Use the Following Information to Answer Question Waverly Company Has Set a Target Return on Investment (ROI)

question 75

Essay

Use the following information to answer Question. The Furniture Division of Waverly Company reports the following results for 2012: $$\begin{array} { l l } \text { Revenues } & \$ 400,000 \\\text { Operating expenses } & \$ 360,000 \\\text { Operating income } & \$ 40,000 \\\text { Operating assets } & \$ 500,000\end{array}$$
Waverly Company has set a target return on investment (ROI) of 12% for the Furniture Division.
Assume that the Furniture Division believes that it can reduce operating expenses by $25,000. If revenues and operating assets stay at the same level, what would the division's ROI be? Would it reach its target ROI?

Understand the frequency ranges and technologies supporting wireless peripherals such as mice.

Understand the proper storage techniques for electronic components to prevent damage.

Identify health risks and appropriate safety measures when handling electronic devices and their consumables.

Know the correct procedures for dealing with electrical fires and the safe use of fire extinguishers.

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Definitions:

U.S. Workers

Individuals working in the United States, encompassing all sectors and types of employment.

Tariff Revenues

The income generated by a government through the imposition of tariffs, which are taxes on imported goods.

Oil Imports

The purchase of crude oil or petroleum products from foreign countries, which is a significant factor for economies dependent on outside sources for their energy needs.

Domestic Price

The price of goods or services within a country's domestic market, as opposed to international or foreign markets.