Arboretum Hybrid Greenery Company is assessing the performance of the Georgia outlet for the years 2011 and 2012.In 2011,the operating income for the outlet was $450,000 while in 2012 it was $390,000.In 2011 gross book value of total assets held by the Georgia outlet was $2,400,000 while in 2012 it was $2,160,000.The accumulated depreciation of total assets for 2011 and 2012 was $600,000.
Required
Compute the 2011 and 2012 ROI using the net book value of total assets.

Question

Quizplus · Accepted Answer

A)2011: $450,000 = 0.25 or 25%
($2,400,000 - $600,000)
2012: $390,000 = 0.25 or 25%
($2,160,000 - $600,000)

Arboretum Hybrid Greenery Company Is Assessing the Performance of the Georgia