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What is the expected ROI

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Reference no: EM132908941

Question - Ring Company reports the following for 2020.

Operating income $80,000

Average operating assets $300,000

Sales $600,000

Operating expenses $520,000

Required -

a. Calculate the ROI for 2020.

b. Ring company plans to invest in a $50,000 equipment that increases sales by $55,000, while increasing operating expenses by $25,000. What is the expected ROI? Should the company go for this plan? Explain.

Reference no: EM132908941

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