contestada

Baird Company calculated its return on investment as 10 percent. Sales are now $320,000, and the amount of total operating assets is $340,000.RequiredIf expenses are reduced by $28,900 and sales remain unchanged, what return on investment will result? (Round your answer to 2 decimal places. (i.e., .2345 should be entered as 23.45).)If both sales and expenses cannot be changed, what change in the amount of operating assets is required to achieve the same result? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)a.Return on investment ________ %b.Operating assets must increase or decrease by ________________

Respuesta :

Operating assets must increase or decrease by a) 18.75% b) $ 149333.33

Given:

a) The return on investment is calculated as: Total sales = $ 300,000 Total operating assets = $ 32,0000 Reduction in expenses = $ 28,000

Return on investment = Net income/operating assets When the values are substituted, we get 0.1 = Net income/$320000 or Net income = 0.1  $320000 or Net income = $ 32000

The reduction in expenses is the amount that has been gained; consequently, the net income will increase; consequently, the net income will be $ 32000 + $ 28000 = $ 60000

Now, the return on investment for the most recent net income will be Return = $ 60000/$320,000 or Return = 18.

To learn more about Return on investment here:

https://brainly.com/question/14235394

#SPJ4

Otras preguntas