Managerial Accounting

Free Version

Upgrade subject to access all content

Difficult

Calculating ROI for Segment: Europe

MGRACT-SHN1XG

See the following chart:

* Europe Asia Australia Company
Operating Revenues \$845,000 \$260,000 \$485,000 \$1,590,000
Operating Expenses \$750,000 \$340,000 \$245,000 \$655,000
Extraordinary Items (\$450,000) \$160,000 \$0 ( \$290,000)
Beginning Operating Assets \$250,000 \$980,000 \$740,000 \$1,970,000
Ending Operating Assets \$290,000 \$90,000 \$710,000 \$1,090,000
Purchases/(Sales) of Assets \$40,000 (\$890,000) \$30,000 (\$880,000)

The company uses "beginning" and "ending" to determine averages. What is the Return on Investment (ROI) for Europe?