Cleopatra Corporation's Lingerie Division Has a Segment Margin of $729,000

question 150

Multiple Choice

Cleopatra Corporation's Lingerie division has a segment margin of $729,000 and net sales revenue of $5,400,000 for the current reporting period.Average total assets for the period were $3,375,000.The division manager is considering implementing a new inventory system which would reduce the total assets by $675,000.Assuming no change in sales or segment margin,the projected ROI with the reduction in inventory would be

• A)13.5%.
• B)20%.
• C)21.6%.
• D)24%.

---

Definitions:

Expiratory Reserve Volume

The additional amount of air that can be forcibly exhaled after the completion of a normal, quiet expiration.

Single Breath

A process of inhaling once then exhaling, often used in respiratory testing to assess lung function and capacity.

Oxygen

A chemical element essential for life, necessary for cellular respiration in most organisms, and a major component of Earth's atmosphere.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration, considered a greenhouse gas.