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The Manager of the Beach Division of Treat Time Is

question 20

Multiple Choice

The manager of the Beach Division of Treat Time is evaluating the acquisition of a new mobile ice cream server.The budgeted operating income of the Beach Division is currently $2,940,000 with total assets of $28,600,000 and noninterest-bearing current liabilities of $600,000.The proposed investment would add $18,000 to operating income and would require an additional investment of $120,000.The targeted rate of return for the Beach Division is 9 percent.Ignoring taxes, how much is the return on investment of the Beach Division if the ice cream server is not purchased?


Definitions:

Vital Role

A crucial position or function that is essential to the operation or success of an organization or system.

Technology Play

A strategic business move focusing on the development, use, or investment in technology to gain a competitive edge.

BPM

Business Process Management, involving the modeling, automation, execution, control, measurement, and optimization of business activity flows.

BPI

Business Process Improvement, a systematic approach to help any organization optimize its underlying processes to achieve more efficient results.

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