Return on investment is computed

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Return on investment (ROI) is computed in the following manner: ROI is equal to turn-over multiplied by earnings as a percent of sales. Turnover is sales divided by total investment. Total investment is current assets (inventories, accounts receivable, and cash) plus fixed assets. Earnings equal sales minus the cost of sales. The cost of sales consists of mill cost of sales, selling expenses, freight and delivery, and administrative costs. Construct an influence diagram that relates these variables.

Reference no: EM131821461

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