Vance Increquires All of Its Divisions to Maintain a Return on on Investment

question 111

Essay

Vance Inc.requires all of its divisions to maintain a return on investment (ROI)of at least 45 per cent.The manager of one of the divisions expects the division's net operating income to be $400 000 and its sales to be $2 000 000.
Required:
Calculate the division's required average operating assets in order to achieve the minimum ROI.

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Definitions:

Component N

Refers specifically to an undefined or unspecified element within a system, implying a placeholder name for any part or aspect under consideration.

Product Structure Tree

A hierarchical representation of the components and sub-components required to build a product, illustrating the relationship between parts.

Ridge Pole

The central horizontal support beam in the roof structure, often found at the apex of the roof.

Fastener Sets

Collections of mechanical devices used to affix or join objects together, including items such as screws, nails, and bolts.