Answer the following questions using the information below:
Carriage Incorporated manufactures horse carriages. The company has two divisions, Wheels and Assembly. Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures. The following information is provided for 2014:

-What are Wheels's and Assembly's return on investment based on current values, respectively?
A) 0.14; 0.25
B) 0.21; 0.25
C) 0.25; 0.14
D) 0.25; 0.21

Question

Answer the following questions using the information below:
Carriage Incorporated manufactures horse carriages. The company has two divisions, Wheels and Assembly. Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures. The following information is provided for 2014:
 
-What are Wheels's and Assembly's return on investment based on current values, respectively?
A) 0.14; 0.25 
B) 0.21; 0.25 
C) 0.25; 0.14 
D) 0.25; 0.21

Quizplus · Accepted Answer

The return on investment (ROI) is calculated by dividing the net profit by the cost of the investment. Based on the given options, Wheels has an ROI of 0.25 and Assembly has an ROI of 0.14.

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