Company A’s revenues are $300 on invested capital of $240. Expenses - 12997

Solution Posted by
ultimatetutor

ultimatetutor

Rating : No Rating
Solution Detail
Price: $1.20
  • From: Business,
  • Posted on: Wed 25 Jul, 2012
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

Company A’s revenues are $300 on invested capital of $240. Expenses are currently 70% of sales. If Angelo Company can reduce its capital investment by 20% in Company A, return on investment will be _____. A. 75% B. 93.75% C. 18.75% D. 46.88%

Solution Description

 Company A’s revenues are $300 on invested capital of $240. Expenses are currently 70% of sales. If Angelo Company can reduce its capital investment by 20% in Company A, return on investment will be _____.