Contrast Crystal Company has experienced some questionable changes in both its operating income and total assets.The managerial accountant reported that operating income has decreased by 6% from $400,000 to $376,000 and its total assets have decreased by 6% from $2,025,000 to $1,900,000 in 2012.
Required
Compute the original ROI and the final ROI.
A)35%;14%
B)20%;20%
C)20%;16%
D)25%;28%
E)13%;18%

Question

Quizplus · Accepted Answer

B)$400,000 = 0.198 ~ 20%; $376,000 = 0.198~20%
$2,025,000 $1,900,000

Contrast Crystal Company Has Experienced Some Questionable Changes in Both