What is roi

Assignment Help Finance Basics
Reference no: EM131438330

Question: Return on investment (ROI) is computed in the following manner: ROI is equal to turnover 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 variable production costs, selling expenses, freight and delivery, and administrative costs.

a. Construct an influence diagram that relates these variables.

b. Define symbols and develop a mathematical model.

Reference no: EM131438330

Questions Cloud

Issues concerning property appraisal : PROPERTY APPRAISAL LAND 1004 - The overall aim is to provide students with the opportunity to investigate in depth issues concerning property appraisal.
Important within the human service delivery system : What characteristics of leadership models do you see as most important within the human service delivery system? Why?
Discuss about the asymmetric cryptography : Description of algorithms that implement asymmetric cryptography and strengths / weaknesses of each algorithm atleast two or three algorithms.
Main approaches toward social responsibility : What are the four main approaches toward social responsibility that a company can take?
What is roi : Return on investment (ROI) is computed in the following manner: ROI is equal to turnover multiplied by earnings as a percent of sales. Turnover is sales divided by total investment.
Management of employee welfare and employment discrimination : What are the correlations between Management of Employee Welfare and Employment Discrimination? How would the HR professional go about determining a curriculum and training method? Can you think of a time when you worked with a negative work group? H..
What can be done to limit software errors : The largest power blackout in North American history hit the northeastern United States and southeastern Canada. More than 50 million people lost power, some for up to two days. At least 11 people died as a result of the blackout. Total cost: $6 b..
Identify three key fact about short-run economic fluctuation : Identify the three key facts about short-run economic fluctuations and how the economy in the short run differs from the economy in the long run.
Manufactures cotton beach towels : George owns as factory that manufactures cotton beach towels. George promises to buy all the cotton he needs from Farmer Mike for the upcoming growing season.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Weighted average cost of capital

Determine a firm's weighted average cost of capital.

  What are advantages to having a strong versus weak currency

Think about the factors that affect exchange rates, and make a case that our currency should or should not be the strongest. In your opinion, what are the advantages to having a strong currency versus a weak currency?

  Dividends and taxes

Finance problems, based  Abnormal Returns,    Underpricing - construct a simple example to show the following:  Dividends and Taxes-,  Dividend Policy

  Computing the residual value

Diamond Autobody purchased some new equipment. The new equipment cost $90,000. The company estimates the equipment will have a residual value of $10,000. Diamond also estimates it will use the equipment for eight years or about 5,000 total hours.

  Marital deduction for gift tax purposes

They marry in October of 2015 at which time David transfers $100,000 into Rebecca's checking account. What is the value of David's marital deduction for gift tax purposes in year 2015?

  What is the cash flow margin

Given that Good Health Clinic is a not-for-profit organization with 100% equity, what is the cash flow margin?

  General phases of the working capital cycle

Question 1: What are four general phases of the working capital cycle? Question 2: What are the three primary sources of short-term funds?

  Describe the budget of the agency by addressing the funding

Describe the budget of the agency by addressing the Fundings. Identify and explain one to two challenges you will have in managing the budget.

  Purpose of internal and external assessments

Explain the four functions of management and the purpose of internal and external assessments. How would you convince upper management about the importance of internal and external assessments?

  Identify a primary target audience for that product

Identify a primary target audience for that product or service in terms that relate to the audience's demographics, needs, or preferences as those relate to the product or service, and behaviors related to the category of or the specific product o..

  Determine which of the following factors is not usually

question 1. a standard cost is a predetermined amount e.g. cost thatshould be incurred under relatively efficient

  Concept of manifest destiny

What if you were a young Cherokee living in North Alabama in 1830. Your father died serving with General Jackson in the Creek War. How would you feel about the concept of Manifest Destiny and how would it affect your reaction to the Indian Removal..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd