1 Adams Corporation evaluates divisional managers based on ROI. Operating results for the company's Northern Division for last year are given below: Sales 27,000,000 Variable expenses Contribution margin 16,200,000 10,800,000 7. Fixed expenses 8,805,000 Net operating income 1.995.000 Lo Average divisional operating assets 9,500,000 %24 %24
Q: Assume the Residential Division of Kappy Faucets had the following results last year: Net sales…
A: Ratio analysis is a method of measuring the financial position of the organization with different…
Q: Shown as follows are responsibility income statements for Butterfield, Inc., for the month of March.…
A: Income statement is the one which is prepared to know the profitability of the entity. It is the…
Q: Selected sales and operating data for three divisions of different structural engineering firms are…
A: Investment:- An investment is and asset which is acquired with the view to generate the income or…
Q: 5 Vanikoro Corporation currently has two divisions which had the following operating results for the…
A: This question deals with the concept of decision making. When entity have two alternatives i.e. to…
Q: Segment Reporting, Decentralization, and the Balanced Scorecard Division A Division B Division C…
A: 1. Formulas:
Q: Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6.51…
A:
Q: Assume a company with two divisions (A and B) prepared the following segmented income statement:…
A: Segment margin of A can be calculated by deducting segment margin of B from total margin.
Q: Compute the residual income for each division
A: The income which is earned over and above expected is income is called as Residual income. Expected…
Q: Adams Corporation evaluates divisional managers based on ROI. Operating results for the company's…
A: Since we answer only three subparts, we will answer the first three subparts. Please resubmit the…
Q: The Electronics Division of Anton Company reports the following results for the current year:…
A: Return on investment is calculated by dividing the operating income by the average operating assets.…
Q: Compute the return on investment for each division
A: Return on investments is a measure of profitability on investment.It is percentage of net profit…
Q: Division A of Muscat Company had the following results for the year just ended: Sales $480,000…
A: Compute the effect on Division A’s ROI if it introduces the new product line. Step 1: Determine the…
Q: 2. The vice president of operations of Recycling Industries is evaluating the performance of two…
A: Since,we answer upto three sub-parts, we shall answer first three. Please resubmit a new question…
Q: Nicholas Technologies operates two divisions: Hardware Services and Software Services. During the…
A: Contribution Margin = Sales - Variable Cost Responsibility Margin = Contribution Margin -…
Q: Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama.…
A: Return on Investment in terms of Margin and Turnover: Return on Investment in terms of Margin and…
Q: The following information is available about the status and operations of VTS Company, which has a…
A: Division B present situation Asset Turnover =…
Q: Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 5.01…
A: 1) Return on investment = Net income/Average total assets Calculation of return on investment of…
Q: Sunland Corporation recently announced a bonus plan to reward the manager of its most profitable…
A: The question is based on the concept of Cost Accounting.
Q: Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated…
A: SOLUTION- SELLING PRICE IS THE FINAL PRICE OF THE PRODUCT I.E HOW MUCH THE END USER PAYS FOR…
Q: Assume the Residential Division of Kappy Faucets had the following results last year: Net sales…
A: Profit margin ratio: It is a profitability ratio calculated by the firm dividing operating income…
Q: Nicholas Technologies operates two divisions: Hardware Services and Software Services. During the…
A: Contribution margin = Total sales - Variable costs Variable costs = Sales * Variable costs as a % of…
Q: Sales $ 12,000,000 $ 14,000,000 $ 25,000,000 Average operating assets $ 3,000,000 $…
A: Investment: It is an asset or item which is purchased and held to generate income or for…
Q: Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6.01…
A: Return on investment is the measurement of the performance of the investment. 1 Return on investment…
Q: Bag Company has the following data needed to complete the operating result for the year just ended:…
A: Return on investment (ROI) is the amount which a firm expects to get from the investment it made. It…
Q: Fashion Forward, Inc. is decentralized into two divisions which are investment centers: Men’s Wear…
A: Preparation of divisional income statement for the Men’s Wear: Fashion Forward Inc.…
Q: Assume the Residential Division of Kipper Faucets had the following results last year: What is the…
A:
Q: The South Division of Wiig Company reported the following data for the current year. Sales Variable…
A: Return on Investment: Return on investment (ROI), also known as rate of return or yield, is a metric…
Q: Bode Corporation has two divisions. East and West. Data from the most recent month appears below:…
A: Break-Even Point: The break-even point is the point at which total costs and total revenues are…
Q: Division I Division II Income ₱ 02,700,000 ₱ 00,600,000 Average invested capital ₱ 18,000,000…
A: Return on investment is also written as ROI. It is the rate of return earned on the investment. It…
Q: Assume a company with two divisions (A and B) prepared the following segmented income statement:…
A: Total Segment margin = Net operating income + Common fixed expenses = $10,000 + 50,000 = $60,000
Q: ROI and Residual Income; Investment Evaluation Income: $150,000 Current residual income of the…
A: 4) Yes, Division performance will be better if they didn't upgrade the competitor. Particulars…
Q: The following selected data pertain to the belt division of Allen Corp. for last year: Sales =…
A: Given the following information: Sales = $500,000 Average operating Assets = $200,000 Operating…
Q: The following information is available about the status and operations of Jay Arr Company, which has…
A: Given, ROI = 15% Discount rate = 12%
Q: Three divisions of Jameson Co. report the following sales and operating data: Fitness Training…
A: ROI means return on investment which means how much returns or net income is getting generated on…
Q: Selected sales and operating data for three divisions of different structural engineering firms are…
A: In order to determine the margin, the net operating income is required to be divided by the net…
Q: Searchlight, Inc. uses ROI to evaluate operations and requires the return on its operating units to…
A: Business organizations compute the ROI so as to know how much the investor receive in comparison to…
Q: Supply the missing data in the following table : Division A Division B Division C…
A: Residual income is the amount remaining out of the net income after deducting the equity charge. The…
Q: Supply the missing data in the following table :…
A: Return on investment and residual income are two profitability ratios which shows how much net…
Q: ROI and Residual Income; Investment Evaluation Income: $150,000 Current residual income of the…
A: As per the honor code, we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…
Q: Microsoft uses residual income to evaluate the performance of its divisions. The company's minimum…
A: Operating income: It is the revenue earned from day to day operational activities of the business…
Q: 1 2 3 4 Alpha Division: Capacity in units 55,000 311,000 105,000 201,000…
A: Solution 1A to 1C A Lowest Acceptable tranfer price 90 (Selling price to Outside customers…
Q: Assume a company with two divisions (A and B) prepared the following segmented income statement:…
A: Break even is the point at which an entity is just recovering its costs from the revenues but not…
Q: Searchlight, Inc. uses ROI to evaluate operations and requires the return on its operating units to…
A: Introduction:- It is used used to identify the probability of return from an investment. The higher…
Q: Dacker Products is a division of a major corporation. The following data are for the most recent…
A: The Margin is calculated as net operating income divided by sales.
Q: Fruit Division 24 Flower Division Sales revenue Cost of goods sold and operating expenses Net…
A: “Since you have posted multiple questions, we will solve the first questions for you. To get the…
USE FORMULA TO ANSWER THE QUESTION FOR EXAMPLE =B1+B2
THAN GIVE THE ASWER
32
SKIP FIRST TWO
I NEED 25 - 33
PLEASE SHOW ME FORMULA.
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
- 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. Determine the profit margin, investment turnover, and return on investment for the Norse Division for 20Y420Y6. Based on your computations, write a brief memo to the president of Gridiron Concepts Inc., Knute Holz, evaluating the divisions performance.Effect of proposals on divisional performance A condensed income statement for the Jet Ski Division of Amazing Rides Inc. for the year ended December 31. 20Y2, is as follows Assume that the Jet Ski Division received no charges from service departments. The president of Amazing Rides has indicated that the division's rate of return on a $15,000,000 investment must be increased to at least 12% by the end of the next year if operations are to continue. The division manager is considering the following three proposals Proposal 1: Transfer equipment with a book value of J3.000.000 to other divisions at no gain or loss and lease similar equipment. The annual lease payments would exceed the amount of depreciation expense on the old equipment by $264,000. This increase in expense would be included as part of the cost of goods sold. Sales would remain unchanged. Proposal 2: Purchase new and more efficient machining equipment and thereby reduce the cost of goods sold by $480,000. Sales would remain unchanged, and the old equipment, which has no remaining book value, would be scrapped at no gain or loss. The new equipment would increase invested assets by an additional $1,000,000 for the year. Proposal 5? Reduce invested assets by discontinuing the tandem jet ski line. This action would eliminate sales of $2,280,000, cost of goods sold of $1,400,000, and operating expenses of $463,600. Assets of $4,200,000 would be transferred to other divisions at no gain or loss. Instructions Which of the three proposals would meet the required 12% return on investment?'Q7 Consider the following data from two divisions of a company, P and Q: Divisional P Q Sales $ 1,500,000 $ 1,000,000 Operating Income $ 600,000 $ 450,000 Investment $ 4,000,000 $ 2,750,000 If both divisions were presented with an opportunity to invest in a project that is estimated to achieve an ROI of 15%, what will the units likely decide? Multiple Choice Division P will not invest; Division Q will invest. Division P will invest; Division Q will not invest. Neither unit will invest in the projects. Division P will be indifferent; Division Q will not invest. Division P will invest; Division Q will be indifferent.
- 7. Jordan Company has two divisions, which reported the following results for the most recent year. Division I Division II Income ₱ 02,700,000 ₱ 00,600,000 Average invested capital ₱ 18,000,000 ₱ 03,000,000 ROI 15% 20% Imputed interest rate = 10% Under residual income, which division is considered to have a better performance? Show solution Group of answer choices Neither Division I nor II Cannot be determined Division I Division II(J) Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division ADivision BDivision CSales$ 12,120,000$ 28,120,000$ 20,120,000Average operating assets$ 3,030,000$ 7,030,000$ 5,030,000Net operating income$ 496,920$ 449,920$ 503,000Minimum required rate of return7.00%7.50%10.00%Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 8% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunityQ35 Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z Sales $ 1,483,000 $ 805,000 $ 5,005,000 Operating Income 216,100 59,700 263,800 Investment in assets 625,600 292,500 3,179,600 The return on sales (ROS) for Division Z is: (Round your percentages to one decimal place.) Multiple Choice 7.4%. 8.3%. 5.3%. 14.6%. 20.4%.
- Selected sales and operating data for three divisions of different structural engineering firms are given asfollows:Division A Division B Division CSales ........................................................... $12,000,000 $14,000,000 $25,000,000Average operating assets ............................ $3,000,000 $7,000,000 $5,000,000Net operating income .................................. $600,000 $560,000 $800,000Minimum required rate of return .................. 14% 10% 16%Required:1. Compute the return on investment (ROI) for each division using the formula stated in terms of marginand turnover.2. Compute the residual income for each division.4. Searchlight, Inc. uses ROI to evaluate operations and requires the return on its operating units to be 9%. Operating data for the Western division is shown below: Sales $1,000,000 Controllable margin 120,000 Total average assets 600,000 Fixed costs 60,000 How much is ROI for the year? Group of answer choices 20% 17% 10% 30%Consider the following 000’s omitted __ Division A Division B Operating assets P 5,000 P 12,500 Operating Income 1,000 2,250 ROI 20 % 18 % Which is a more successful division in terms of ROI ? Using 16 % as the minimum required of return , compute the residual income for each decision. Which division is more successful under this rate ?
- Case 1: ROI You are comparing the performance of two (2) separate divisions, segments A and B, using ROI Analysis. A B Sales P100,000.00 P500,000.00 Operating Expenses 30,000.00 300,000.00 Net Operating income 70,000.00 200,000.00 Average Operating Assets 10,000.00 40,000.00 Required: Using ROI Analysis, which segment is performing better? To answer this question, you need to: Compute the ROI of each segment and Compute the components of ROI of each segmentQ1 Hope and Co. is a multi-divisional marketing firm. The performance of divisions is evaluated using financial metrics such as ROI, Residual Income and EVA. For the year ended June 30, 2020, Hope's CEO received the following information about the performance of the sports marketing division: Sales Revenues $950,000 Operating Income $275,000 Total Assets $1,750,000 Current Liabilities $325,000 Debt (interest rate: 4%) $450,000 Common equity (book value) $550,000 For divisional performance evaluation Hope defined investment as total assets and income as operating income i.e. income before interest and taxes. Hope pays a flat rate of 20% in taxes on income. (a) What was the Sports Marketing division's ROI for the year? (2 decimal places)Q1 Hope and Co. is a multi-divisional marketing firm. The performance of divisions is evaluated using financial metrics such as ROI, Residual Income and EVA. For the year ended June 30, 2020, Hope's CEO received the following information about the performance of the sports marketing division: Sales Revenues $950,000 Operating Income $275,000 Total Assets $1,750,000 Current Liabilities $325,000 Debt (interest rate: 4%) $450,000 Common equity (book value) $550,000 For divisional performance evaluation Hope defined investment as total assets and income as operating income i.e. income before interest and taxes. Hope pays a flat rate of 20% in taxes on income. (a) What was the Sports Marketing division's ROI for the year? (2 decimal places) (b) Based on Hope's required rate of return of 6% what was the residual income for the 2020 year? (2 decimal places) (c) Hope's debt trades at book value while its equity has a market value…