Can someone please answer these 4 accounting problem? Please fill in every cell
ID: 2449711 • Letter: C
Question
Can someone please answer these 4 accounting problem? Please fill in every cell and every option. I'd be appreciative if you showed your work as well, but not nneccessary, thank you! Link if you can't view the images: http://i.imgur.com/zj9Uqct.png Also if there is not enough info for any question please don't mark the question as "needs more info", just answer the other questions, thank you, because I've asked this before and no one answered it because someone wrote "needs more info" but I didn't get anymore info.
Explanation / Answer
Answer:
2. Reject - Because the overall ROI will decrease if the new product line is added, which Fred does not want to see.
3. Adding the new product line will increase overall ROI, because the ROI of new product line is higher than company's current ROI.
4.
a)
b) The new product line is increasing the overall residual income. So fred should accept adding the new product line.
Existing In$ A Net operating Income 1394400 B Divisional operating asset 5600000 C = A/B ROI 24.90%