The Hobby Shop Company owns outlets in Olympia,WA,Boise,ID,and Boston,MA.The operating income for the Olympia outlet is $260,000 while the operating incomes for the Boise and Boston outlets are $320,000 and $620,000.The 2012 gross book value of the total assets for the Olympia outlet is $2,300,000 and for the Boise outlet and Boston outlet the gross book value of the total assets is $2,800,000 and $4,100,000.
Required
Compute the 2012 ROIs for the Olympia outlet,the Boise outlet,and the Boston outlet for the Hobby Shop Company.
A)10.1%;11.2%;9.9%
B)11.3%;11.4%;15.1%
C)12.5%;12.3%;16.0%
D)10.9%;11.1%;13.5%
E)9.8%;10.2%;14.0%

Question

Quizplus · Accepted Answer

B)[($260,000/$2,300,000)] = 0.113 or 11.3%
[($320,000/$2,800,000)] = 0.114 or 11.4%
[($620,000/$4,100,000)] = 0.151 or 15.1%

The Hobby Shop Company Owns Outlets in Olympia,WA,Boise,ID,and Boston,MA