Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 11 - Performance Measurement in Decentralized Organizations - The Foundational 15 - Required - Page 499: 7

Answer

19.17%

Work Step by Step

If the company pursues the investment opportunity and otherwise performs the same as last year, this year's margin would be: $\frac{200.000+30.000}{1.000.000+200.000}\approx19.17$% * $30.000 is this year's net operating income.
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