Criner Incorporated Reported the Following Results from Last Year's Operations

question 301

Essay

Criner Incorporated reported the following results from last year's operations:
At the beginning of this year, the company has a $1,800,000 investment opportunity with the following characteristics:
Required:
1.What was last year's return on investment (ROI)? (Round to the nearest 0.1%.)
2. If the company pursues the investment opportunity and otherwise performs the same as last year, what will be the overall return on investment will this year? (Round to the nearest 0.1%.)

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Definitions:

Management By Exception

The review of budget reports by top management focused entirely or primarily on differences between actual results and planned objectives.

Materials Quantity Variance

The difference between the expected quantity of materials to be used in production and the actual quantity used, calculated in terms of cost.

Standard Quantity

The expected amount or volume of a specific input or material required in the production of goods or services.

Materials Price Variance

The difference between the actual cost of materials and the expected cost based on standard pricing, used to evaluate cost management.