Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 42

Matthews Produce harvests and sells Florida oranges. Matthews has hired you to determine its return on investment (ROI) based on both net book value and gross book value. Financial data for the company show that profits are $2 million, the net book value (NBV) of operating assets is $10 million, and the gross book value (GBV) of these assets is $40 million. What is ROI based on NBV and based on GBV