Rose Company has sales of $1,200,000 and operating assets of $800,000 and achieved a 10 percent ROI. 4 If Rose Company increases expenses by $20,000 and sales remain unchanged, what ROI will result? a) 7.5% b) Not able to be calculated from the information provided. c) 14.5%. d) 10%.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 6EB: During the current year, Plainfield Manufacturing earned income of $845,000 from total sales of...
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Rose Company has sales of $1,200,000 and operating assets of $800,000 and
achieved a 10 percent ROI.
If Rose Company increases expenses by $20,000 and sales remain unchanged, what
ROI will result?
a) 7.5%
b) Not able to be calculated from the information provided.
c) 14.5%.
d) 10%.
Transcribed Image Text:Rose Company has sales of $1,200,000 and operating assets of $800,000 and achieved a 10 percent ROI. If Rose Company increases expenses by $20,000 and sales remain unchanged, what ROI will result? a) 7.5% b) Not able to be calculated from the information provided. c) 14.5%. d) 10%.
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