Fleur de Lys Segment of Windy's restaurants is an investment centre.The manager is considering two possible expansion alternatives.The required investments, controllable margins, and the ROIs of each expansion project are as follows: $$\begin{array} { l c c c }
\text { Project } & \text { Investment } & \text { Controllable Margin } & \text { ROl } \
\text { Power } & \$ 75,000 & \$ 15,000 & 20 \% \
\text { Super } & 330,000 & 56,100 & 17 \%
\end{array}$$ The investment centre is currently generating an ROI of 15% based on $700,000 in operating assets and a controllable margin of $105,000.Which one of following projects will increase Fleur de Lys Segment's ROI?

Question

Fleur de Lys Segment of Windy's restaurants is an investment centre.The manager is considering two possible expansion alternatives.The required investments, controllable margins, and the ROIs of each expansion project are as follows: $$\begin{array} { l c c c } 
\text { Project } & \text { Investment } & \text { Controllable Margin } & \text { ROl } \
\text { Power } & \$ 75,000 & \$ 15,000 & 20 \% \
\text { Super } & 330,000 & 56,100 & 17 \%
\end{array}$$ The investment centre is currently generating an ROI of 15% based on $700,000 in operating assets and a controllable margin of $105,000.Which one of following projects will increase Fleur de Lys Segment's ROI?

Quizplus · Accepted Answer

The Answer of Fleur de Lys Segment of Windy's restaurants is an investment centre.The manager is considering two possible expansion alternatives.The required investments, controllable margins, and the ROIs of each expansion project are as follows: $$\begin{array} { l c c c } 
\text { Project } & \text { Investment } & \text { Controllable Margin } & \text { ROl } \
\text { Power } & \$ 75,000 & \$ 15,000 & 20 \% \
\text { Super } & 330,000 & 56,100 & 17 \%
\end{array}$$ The investment centre is currently generating an ROI of 15% based on $700,000 in operating assets and a controllable margin of $105,000.Which one of following projects will increase Fleur de Lys Segment's ROI?

Fleur De Lys Segment of Windy's Restaurants Is an Investment