C) Have regularly scheduled performance reviews. -Sales 50,000,000 -Operating Income 3,200,000 -Average Operating Assets 10,000,000 The com, The Casket Division of Saal Corporation had average operating assets of $1,110,000 and a net operating income of $295,200 in January. 3. Aide Industries is a division of a major corporation. We all laughed at the joke about_ honest man, even thou Each division is evaluated as a profit center. Last year the division had total sales of $21,300,000, net operating income of $575,100, and average operating assets of $5,000,000. For the Small Appliances Division, calculate: a. Average operating assets b. The following data are for the most recent year of operations: Sales Net operating income Average operating assets The company's minimum required rate of return $37,580,000 $ 3,358,960 $ 9,100,000 14% The division's margin used to compute ROI is closest to: Multiple Choice 33.2% O . The company's minimum required rate of return is 12%. Supler Corporation produces a part used in the manufacture of one of its products. The compan, Gilde Industries is a division of a major corporation. The company's minimum required rate of return is 12%. Data concerning the most recent year appears below: Sales $17,950,000 Net operating income $1,005,200 Average operating assets $4,890,000 The division's margin is closest to: A. It basically signifies the percentage return earned by an entity on, A: The following information Given in the question: 9.90. The company's minimum required rate of return is 14%. A: ROI stands for return on investment that shows the return earned by the company on the investment. Understand what is residual income. The following data are for the latest year of operations: Sales $5,820,000 Net operating income $436,500 Average operating assets $2,000,000 T. The Portland Division's operating data for the year 2015 is as follows: Return on investment - 12% Minimum required rate of return - 10% Average net operating assets - $500,000 Sales - $1,600,000 Compute the net operating income of 2015. Minimum required rate of return 10% Total assets $800,000 The averag, Handle Fabrication is a division of a major corporation. $38,380,000 Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that 143,750,000 of assets have been invested in the Consumer Products Division. Course Hero is not sponsored or endorsed by any college or university. Return on Investment, Margin, Turnover Data follow for the Consumer Products Division of Kisler Inc.: (Note: Round all answers to two decimal places.) By reducing labor and other operating costs, the machine would provide annual cost savings of $35,000. Compute the margin of safety in dollars based on the given income statement. 4. In year 3 the company would have to incur one-time renovation expenses of $96,000. Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the following income statement for the last year: At the beginning of last year, Elway had 28,300,000 in operating assets. Macon Mills is a division of Bolin Products. Residual income an; an The company's minimum required rate of return is 13%. Accounting Chapter 11 Flashcards | Quizlet Sales $38,000,000 Net Operating Income $2,800,000 Average Operating Assets $15,000,000 The com, Gaal Industries is a division of a major corporation. True or False, Opportunity costs represent costs that can be reduced by effective management of operations. The following data are for the most recent year of operations: The company's minimum required rate of return14%. A: Please find the answers to the above questions below: A: Profit margin ratio: The division, Heavey Fabrication is a division of a major corporation. Sales $3,500,000 Net operating income $280,000 Average operating assets $1,500,000 Minimum required rate of return 16% A. Last year the division had total sales of $24,240,000, net operating income of $2,278,560, and average operating assets of $6,302,400. The company's minimum required rate of return is 14%. 3. Maldonados minimum acceptable rate of return is 9%. a.Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the International Division, assuming that $20,000,000 of assets have been invested in the International Division. An outside supplier has offered to provide the annual requirement of 7,200 of the parts for only $13 each. Required: 1. ), Schlarbaum Corporation's management keeps track of the time it takes to process orders. Fixed manufacturing overhead 5 The new machine would replace some old equipment that would be sold for scrap now, yielding $21,300. The company's minimum required rate of return is 18%. A manager would generally like to see a trend indicating a decrease in setup time. Last year the division had total sales of $21,720,000, net operating income of $1,346,640, and average operating assets of $4,778,400. Assume that Tolar decides to upgrade the calculators. How would that affect average operating assets? The company's minimum required rate of return is 12%. Last year the division had total sales of $26,110,000, net operating income of $1,801,590, and average operating assets of $7,000,000. What is the return on investment for Division A? Last year, the division had total sales of $21,520,000, net operating income of $538,000, and average operating of $8,000,000. Data for each division for last year are as follows (numbers in thousands): The income tax rate for Xenold, Inc., is 40 percent. Numerator Last year the division had total sales of $21,300,000, net operating income of $575,100, and average operating assets of $5,000,000. Formula = turnover/ Average operating assets Compute the ROI and the margin and turnover ratios for each year for the Furniture Division. If these calculators are upgraded at a total cost of $100,000, they can be sold for a total of $160,000. A condensed income statement for the Specialty Products Division for the past year, assuming no support department allocations, along with asset information is as follows: The manager of the Specialty Products Division was recently presented with the opportunity to add an additional product line, which would require invested assets of 14,400,000. Sylveon and Glaceon. The firm uses two departments to manufacture these jerseys: the Cutting Department and the Sewing, Allocation of OH Costs - Waterfall, Ltd.; Background information Waterfall, Ltd. manufactures custom basketball jerseys for professional basketball teams. copyright 2003-2023 Homework.Study.com. The divi, Gilde Industries is a division of a major oorporation. Last year the division had total sales of $16,260,000, net operating income of $1,040,640, and average operating assets of $3,902,400. The following data are for the most recent year of operations: Sales $ 36,480,000 Net operating income $ 2,808,960 Average operating assets $ 8,000,000 The company's minimum required rate of return 16 % The division's margin used to compute ROI is closest to: A) 21.9% B) 29.6% C) 7.7% D) 35.1% Residual income = Operating income - (Operating assets * Required Our experts can answer your tough homework and study questions. Requ, Cabal Products is a division of a major corporation. B. b. what is the minimum acceptable operating income. u do first? Justify your choice, 1.Explain where the market equilibrium occurs. The division's, Chace Products is a division of a major corporation. 4.Explain why the market was out of equilibrium (what caused it to be out of equilibrium) and what needed to be done to bring the market back to equilibrium. (Round your answer up to the next whole unit.) The times recorded for a particular order appear below: Cabell Products is a division of a major corporation. Last year the division had total sales of $26,110,000, net operating income of $1,801,590, and average operating assets of $7,000,000. Average operating assets 4.Explain why the market was out of equilibrium (what caused it to be out of equilibrium) and what needed to be done to bring the market back to equilibrium. The company's required rate of return is 18%. 90 an; a Last year the division had total sales of $17,540,000, net operating income of $1,438,280, and average operating assets of $4,735,800. The Xenolds total capital employed is 5.04 million (2,600,000 for the Home Division, 1,700,000 for the Restaurant Division, and the remainder for the Specialty Division). True or False, A complete income statement need not be prepared as part of a differential cost analysis. 5.6% C. 21.8, The Consumer Products Division of Weiter Corporation had average operating assets of $570,000 and net operating income of $65,100 in March. Dacker Products is a division of a major corporation. Given Return on Investment =20% Data concerning the most recent year appears below: Dacker Products is a division of a major corporation. Prepare a segmented income statement for Xenold, Inc., for last year. The following data are for the Akron Division of Consolidated Rubber, Inc.: Sales Net operating income Average operating assets Stockholders' equity Residual income $760,000 $ 46,000 $260,000 $ 76,000 $ 16,000 For the past year, the margin used in ROI calculations was: Multiple Choice 6.05% O O 8.72% O 10.00% 8.16% C. Experts are tested by Chegg as specialists in their subject area. Gabbe Industries is a division of a major corporation. The division's turnover used to compute ROI is closest to: Serie Inc. reported the following results from last years operations: At the beginning of this year, the company has a $2,100,000 investment opportunity, If the company pursues the investment opportunity and otherwise performs the same as. The company requires a minimum pretax return of 9% on all investment projects. 37,080,000 Net operating income $ 3,108,960 Average operating 1. $15,000 c. ($60,000) d. $60,0, Gaal Industries is a division of a major corporation. True or False, If investment funds are limited, the net present value of one project should not be compared directly to the net present value of another project unless the initial investments in these projects are equal. Communication The Norse Division of Gridiron Concepts Inc. experienced significant revenue and profit growth from 20Y4 to 20Y6 as shown in the following divisional income statements: There are no support department allocations, and the division operates as an investment center that must maintain a 15% return on invested assets. Aide Industries is a division of a major corporation. The following data are for the most recent year of operations: Sales $36,480,000 Net operating income $ 2,808,960 Average operating assets $ 8,000,000 The company's minimum required rate of return 16% The division's turnover used to compute ROI is closest to: Explanation Turnover = Sales . At the end of the year, Elway had 23,700,000 in operating assets. During the most recent month, the. The company's minimum required rate of return is 12%. Variable manufacturing overhead 2 The times recorded for a particular order appear below: Sunk costs are costs that have proven to be unproductive. The company's minimum required rate of return is 18%. The income tax expense in year 2: The management of Leitheiser Corporation is considering a project that would require an initial investment of $57,000. The firm uses two departments to manufacture, CVP#1 - Goalie's Ball; Background information for Goalie's Ball, Inc. Goalie's Ball, Inc. manufactures soccer balls. ABC Products is a division of a major corporation. Dacker Products is a division of a major corporation. 3. A. A. Last year the division had total sales of $18,690,000, net operating income of $934,500, and average operating assets of $5,233,200. Last year the division had total sales of $23,870,000, net operating Income of $1,479,940, and average operating assets of $5,012,700. Will this improve the divisions financial situation? We all laughed at the joke about_ honest man, even thou Dacker Products is a division of a major corporation. Last year the division had total sales of $23,878,800, net operating income of $3,056,486, and average operating assets of $8,844,000. The compan, Cabal Products is a division of a major corporation. 23.5% c. 4.9% d. 18.6%, ABC Industries is a division of a major corporation. CONCEPTUAL CONNECTION Comment on why the ROI for Elway Company is relatively high (as compared to the lower ROI of a typical manufacturing company). = Last year the division had total sales of $24,886,200, net operating income of $4,106,223, and average operating assets of $8,436,000. The company's minimum required rate of return is 12%. given A: 1) The following data are for the last year of operations: Sales $19,080,000 Net operating income $591480 Average operating assets $6,000,000 Minimum required rate of return 12% The division's margin is c, Daab Products is a division of a major corporation. Use the DuPont formula to compute the return on investment and show (A) the profit margin, (B) the investment turnover, and (C) the return on investment. Xenold, Inc., has been in business for over 15 years and is considered a relatively stable stock, despite its link to the cyclical construction industry. Compute the ROI and the margin and turnover ratios for each year for the Houseware Division. Turnover=NetoperatingincomeAverageoperatingassets, A: Return on investment is one of the profitability ratio which is being used in business. The company's minimum required rate of return is 12%. The division's, Cabal Products is a division of a major corporation. ): Almendarez Corporation is considering the purchase of a machine that would cost $220,000 and would last for 9 years. This shows, A: Target Rate of return: Boney Corporation processes sugar beets that it purchases from farmers. What is Harry's marital status, and how many dependents does he claim? Data for each division for last year are as follows (numbers in thousands): The income tax rate for Xenold, Inc., is 40 percent. Prepare a new income statement to support your answer. Minimum required return =, A: RESIDUAL INCOME : 2. Denominator The following data are for the most recent year of operations: Sales Net operating income Average operating assets The company's minimum required rate of return $38,280,000 $ 3,708,960 $ 9,800,000 163 The division's margin used to compute ROI is closest to: Multiple Choice 0 37.8% 0 9.7% 0 . Createyouraccount, The division's residual income is $1,748,960 (d). Last year the division had total sales of $23,800,000, net operating income of $2,903,600, and average operating assets of $7,000,000. Get access to this video and our entire Q&A library, What Is Residual Income? The division turnover is closest to: A. d. Why might the manager of the Specialty Products Division decide to reject the new product line? The working capital would be released for use elsewhere at the end of the project. Last year the division had total sales of $21,300,000, net operating income of $575,100 and average operating assets of $5,000,000 The company's minimum required rate of return is 12% The division s ma, Cooking Wares is a division of a major corporation. Dacker Products is a division of a major corporation. True or False, A vertically integrated company is less dependent on its suppliers than a company that is not vertically integrated. What is the financial advantage (disadvantage) for the company from processing one batch of sugar beets into the end products industrial fiber and refined sugar rather than not processing that batch at all? You can specify conditions of storing and accessing cookies in your browser, Dacker Products is a division of a major corporation. Determine the profit margin, investment turnover, and return on investment for the Norse Division for 20Y420Y6. A: 1. Residual income is: a) Net operating income plus the minimum required return on average operating assets. Last year the division had total sales of $27,615,900, net operating income of. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. What is the Company's asset turnover? Residual Income The Avila Division of Maldonado Company had operating income last year of 136,400 and average operating assets of 1,900,000. Average investment = $416500 Profit margin, investment turnover, and return on investment The condensed income statement for the International Division of Valgenti Inc. is as follows (assuming no service department charges) The manager of the International Division is considering ways to increase the return on investment. Calculate ROI and residual income for each division: A: Return on investment is a profitability measure that determines how well an investment performed. Last year the division had total sales of $26,320,000, net operating income of $2,424,320, and average operating assets of $7,000,000. 2. Eevee Company reported a contribution margin of 70,000 for Sylveon, A: Introduction:- B. The present value of the cash inflows would be $88,580. Suppose sales revenues exceed the estimated amount on the income statement by 612,000. TARDIS has the capacity to produce 100,000 Sonic Screwdrivers each year. The company's minimum required rate of return is 12%. The net present value of the proposed project is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount. Last year the division had total sales of $11,440,000, net operating income of $686,400, and average operating assets of $2,402,400. Return On Investment =NetOperatingIncomeAverageOperatingAssets Xenold, Inc., has two sources of financing: bonds paying 5 percent interest, which account for 25 percent of total investment, and equity accounting for the remaining 75 percent of total investment. C, The following information is available on Company A. A. The following data are for the latest year of operations: Sales $14,720,000 Net operating income $1,000,960 Average operating assets $4,000,000 The, Eacher Wares is a division of a major corporation. (Ignore income taxes.) where, No other cash outflows would be required. $3,058,960; $4,248,960 $(3,277,840) Residual income can be defined as a remaining income left with the company after deducting the expenses made on the capital expenditures from the operating income. It, A: ROI (Return on Investment) is used to measure the efficiency of the business investment by, A: Margin = Earnings * 100/Sales We reviewed their content and use your feedback to keep the quality high. Last year the division had total sales of $21,720,000, net operating income of $1,346,640, and average operating assets of $4,778,400. =, A: (1) Margin? Operating income = $ 83300, A: RESIDUAL INCOME : The division's margin is closest to A) 39.7% B) 47.6% C) 7.9% D), Iba Industries is a division of a major corporation. The following data are for the most recent year of operations: $38,380,000 $ 3,758,960 $ 9,900,000 Sales Net operating income Average operating assets The company's minimum required rate of return 15% The division's margin used to compute ROI is closest to: Multiple Choice 35.6% 38.0% 25.8% 9.8%, Managerial Accounting: The Cornerstone of Business Decision-Making. The company's minimum required rate of return is 15%. Required: Compute the (1) operating income, (2) margin and turnover ratios, and (3) ROI. a) What is t, Ash Wares is a division of a major corporation. CONCEPTUAL CONNECTION Briefly explain the meaning of ROI. What was the Consumer Products Division's residual income in May? Selling expenses = $ 100000 (Round to four significant digits.) The company', Aide Industries is a division of a major corporation. Compute average operating assets. Margin = NOI/Sales A) ($3,000), Eacher Wares is a division of a major corporation. (Note: Round the answer for margin ratio to two decimal places.) What is implied by space as a form of nonverbal communication? was not in equilibrium for a product or service. If sales revenues are 20 percent greater than expected, what is the percentage increase in profits? ACCT 2402 Chapter-10 Quiz (Solutions) (1).docx. Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of $30,000, and invested assets of $600000. The minimum required rate of return for performance evaluati, Beall Industries is a division of a major corporation. 6. Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of $30,000, and invested assets of $600000. Dacker Products is a division of a major corporation. The following What is, Gilde Industries is a division of a major corporation. Question: Dacker Products is a division of a major corporation. The following data are for the most recent year of operations: Sales Net operating income Average operating assets The company's minimum required rate of return $37,580,000 $ 3,358,960 $ 9,100,000 14% The division's margin used to compute ROI is closest to: Multiple Choice 33.2% O 36.9% o 24.2% 8.9% Determine the Specialty Products Division managers bonus for the past year. First week only $4.99! Assume that direct labor is an avoidable cost in this decision. Last year the division had total sales of $21,300,000, net operating income of $575,100, and average operating assets of $5,000,000. The division's turnover is closest to: Multiple Choice O 10.86 O 3.76 O 0.35 O 2.89 Comment on the performance of each of the divisions. Compute average operating assets. Margin c. Turnover d. Return on investment (ROI) 3. The following data are for the most recent year of operations: Sales $ This problem has been solved! What is the ROI? Compute the margin and turnover ratios for each year. Dacker Products is a division of a major corporation. Included in the income was interest expense of $2,800,000. 16.89% c. Revise the data in your worksheet as follows: Sales $40,000,000 Net operating income $4,400,000 Average operating assets $10,000,000 Minimum required rate of return 13% A. You can specify conditions of storing and accessing cookies in your browser. 0.20 C. 5.1, Global Parts is a division of a major corporation. Last year, the division had total sales of $12,880,000, net operating income of $837,200, and average operating assets of $2,833,600. Cleaning ProductsDivision Data concerning the most recent year appears below: Sales $17,810,000 Net operating income $783,640 Average operating assets $4,640,000 The division's return on investment (ROI) is: a. Required: 1. Require, Cabal Products is a division of a Major Corporation. The following data are for the latest year of operations. (Selling price to Outside customers, A: Return on Investment is used to evaluate the profitability of an asset or an investment and the. It is calculated by, A: Given information 3. Dacker Products is a division of a major corporation. The following Prepare a segmented income statement for Xenold, Inc., for last year. A: Here in this question, we are required to calculate break even point for Division A. Sales = $490000 All other trademarks and copyrights are the property of their respective owners. Agustin Industries is a division of a major corporation Data concerning C Company had the following results last year: Net operating income $1,080 Turnover 2 ROI 9% C Company's average operating assets were _____. Last year the division had total sales of $24,048,000, net operating income of $2,765,520, and average operating assets of $6,012,000. The company's minimum required rate of return is 12%. Investment in division X = 379,700, A: Break even sale is the amount which covers all the costs incurred by an entity but do not result in, A: The question is related to Residual Income or Retained Earnings. Answered: Dacker Products is a division of a | bartleby Jarriot, Inc., presented two years of data for its Furniture Division and its Houseware Division. 2. A. 2. Justify your choice, 1.Explain where the market equilibrium occurs. ABC Industries is a division of a major corporation. The company uses straight-line depreciation on all equipment. The division's minimum required rate of return is 10%. At present, the ball is, Clyde's Comfort, Inc., produces and sells four different sizes of dog beds: Small, Medium, Large, and Extra Large. The following data are for the most recent year of operations: Sales $ 36,480,000 Net operating income $ 2,808,960 Average operating assets $ 8,000,000 The company's minimum required rate of return 16 % The division's residual income is closest to: Multiple Choice, Which of the following do you prefer for business/ economic transactions. The following data are for the most recent year of operations: Sales$36,980,000 Net operating income$3,058,960 Average operating assets$8,500,000 The company's minimum required rate of return 14% The division's residual income is closest to: Multiple Choice. The condensed income statement for the Consumer Products Division of Tri-State Industries Inc. is as follows (assuming no support department allocations): The manager of the Consumer Products Division is considering ways to increase the return on investment. The following data are for the latest year of operations. Sales Net $50,000,000 Operating Income $3,200,00 Average Operating Assets $10,000,000 The company's minimum required rate of return 15%. Data concerning the most recent year appears below: Sales $18,080,000 Net operating income $940,160 Average operating assets $4,810,000 The division's turnover is closest to: A. Net operating income $1141700 Last year the division had total sales of $21,500,000, net operating income of $576,100, and average operating assets of $5,100,000. The president is concerned that the manager of the Specialty Products Division rejected the addition of the new product line, even though all estimates indicated that the product line would be profitable and would increase overall company income. following data are for the most recent year of operations: Sales $ Cabell Products is a division of a major corporation. Last year, the division had total sales of $10,040,000, net operating income of $582,320, and average operating assets of $4,000,000. Xenold, Inc., manufactures and sells cooktops and ovens through three divisions: Home, Restaurant, and Specialty. Dacker Products is a division of a major corporation. Margin, Turnover, Return on Investment Pelak Company had sales of 25,000,000, expenses of 17,500,000, and average operating assets of 10,000,000. It refers to the return that an investor would want to make from any capital, A: Operating income of division X = $ 162,200 The company's tax rate is 30%. a. assets $ 8,600,000 The company's minimum required rate of return 16 A batch of sugar beets costs $60 to buy from farmers and $19 to crush in the company's plant. Ravena Labs., Inc. makes a single product which has the following standards: Direct materials: 2.5 ounces at $20 per ounce Direct labor: 1.4 hours at $12.50 per hour Variable manufacturing overhead: Ferrar Corporation has two major business segments-Consumer and Commercial. If the division's average operating assets last year were $450,000, then the division's residual income for last year was: a. . The profitability index of the project is closest to (Ignore income taxes.
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