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ACCT 216 Class Example Facts for the Topic Responsibility Accounting: Return on Investment (ROI) and Residual Income (RI) & An Additional HW Question Manager Sales Operating Expenses Operating Income Total Assets Target Rate of Return Project's ROI Angie $1,875,000 $1,687,500 $187,500 $625,000 20% 25% Barry $2,250,000 $1,912,500 $337,500 $1,500,000 30% Candice $4,500,000 $3,375,000 $1,125,000 $3,000,000 40% Changes to Angie's baseline facts: 1) Sales increase by 10%; operating expenses increase by 7%; no change in total assets 2) Operating expenses decrease by 2%; no change in sales or total assets 3) Sales increase by 5%; operating expenses increase by 5%; no change in total assets Additional HW Question Name three actions that a business can set as objectives that would, if achieved, have the effect of increasing its ROI.

ACCT 216 Class Example Facts for the Topic Responsibility Accounting: Return on Investment (ROI) and Residual Income (RI) \& An Additional HW Question Changes to Angie's baseline facts: 1) Sales increase by 10%; operating expenses increase by 7%; no change in total assets 2) Operating expenses decrease by 2%; no change in sales or total assets 3) Sales increase by 5%; operating expenses increase by 5%; no change in total assets Additional HW Question Name three actions that a business can set as objectives that would, if achieved, have the effect of increasing its ROI

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