Part I.East Valley Manufacturing had gross profit of $450,000 and selling & administrative expenses of $275,000 last year. The company also began last year with $1,800,000 of operating assets and ended the year with $1,500,000 of operating assets.
Calculate Return on Investment for East Valley Manufacturing.
Part II.Saguaro Boat Engines had sales of $6,400,000, cost of goods sold of $4.8 million, and selling & administrative expenses of $650,000 for its most recent year of operation. The company%u2019s tax rate is 40%. The total Capital Employed by the firm is $5,000,000. The following information is also available.