Agustin Industries is a division of a major corporation. Data concerning the most recent year appears below. $18,080,000 $ 940,160 $ 4,810,000 Sales Net operating income Average operating assets The division's turnover is closest to: Multiple Choice 19.23 3.76 0.20 512
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- Last Resort Industries Inc. is a privately held diversified company with five separate divisions organized as investment centers. 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. A projected income statement for the new product line is as follows: The Specialty Products Division currently has 27,000,000 in invested assets, and Last Resort Industries Inc.s overall return on investment, including all divisions, is 10%. Each division manager is evaluated on the basis of divisional return on investment. A bonus is paid, in 8,000 increments, for each whole percentage point that the divisions return on investment exceeds the company average. 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. You have been asked to analyze the possible reasons the Specialty Products Division manager rejected the new product line. a. Determine the return on investment for the Specialty Products Division for the past year. b. Determine the Specialty Products Division managers bonus for the past year. c. Determine the estimated return on investment for the new product line. Round percentages to one decimal place and the investment turnover to two decimal places. d. Why might the manager of the Specialty Products Division decide to reject the new product line? Support your answer by determining the projected return on investment for 20Y6, assuming that the new product line was launched in the Specialty Products Division and 20Y6 actual operating results were similar to those of 20Y5. e. Suggest an alternative performance measure for motivating division managers to accept new investment opportunities that would increase the overall company income and return on investment.Dacker Products is a division of a major corporation. The following data are for the most recent year of operations: Sales$ 37,880,000Net operating income$ 3,508,960Average operating assets$ 9,400,000The company's minimum required rate of return14% The division's residual income is closest to:Davis Corporation reported the following financial data for one of its divisions for the year; average assets of $540,000; sales of $1,069,200; and income of $241,100. The investment turnover is: Multiple Choice 22.3. 50.5. 1.98. 447.6. 11.3.
- Hardin Company is a division of a major corporation. The following data are for the latest year of operations: Sales $ 19,600,000 Net operating income $ 470,400 Average operating assets $ 5,000,000 The company's minimum required rate of return 10 % Required: What is the division's residual income?Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z Sales $ 1,350,000 $ 940,000 $ 4,869,000 Operating Income 139,100 98,800 225,300 Investment in assets 272,900 434,400 3,253,200 The asset turnover (AT) for Division Y is calculated to be (rounded):Corycorn Corp. and its divisions (each is an operating segment) are engaged solely in manufacturing operations. The following data (consistent with prior years' data) pertain to the operations conducted for the yaer ended December 31, year 1: (Industry Operating Segment) Total revenue Operating profit Identifiable assets at 12/31/Y1 A P10,000,000 P1,750,000 P20,000,000 B 8,000,000 1,400,000 17,500,000 C 6,000,000 1,200,000 12,500,000 D 3,000,000 550,000 7,500,000 E 4,250,000 675,000 7,000,000 F…
- An entity and its divisions reported the following for the current year: Sales to unaffiliated customers 40,000,000 Intersegment sales of product similar to those sold to unaffiliated customers 12,000,000 Interest earned on loans to other operating segments 1,000,000 The entity and all of its divisions are engaged solely in manufacturing operations. To qualify as reportable segment, the segment revenue should at least be what amount? A. 5,300,000 B. 4,100,000 C. 5,200,000 D. 4,000,000The Global Products Corporation has three subsidiaries: Medical Supplies Heavy Machinery Electronics Sales.......... $20,040,000 $5,980,000 $4,730,000 Net income 1,700,000 592,000 402,000 (after taxes) Assets............8,340,000 8,760,000 3,570,000 a. Which division has the lowest return on sales? b. Which division has the highest return on assets? c. Compute the return on assets for the entire corporation. d. If the $8,760,000 investment in the heavy machinery division is sold off and redeployed in the medical supplies subsidiary at the same rate of return on assets currently achieved in the medical supplies division, what will be the new return on assets for the entire corporation?Far Sight is a division of a major corporation. The following data are for the latest year of operations: Sales $24,480,000 Net operating Income $1,738,080 Average operating assets $6,000,000 The company’s minimum required rate of return 16% Required: a. What is the division's return on investment (ROI)?b. What is the division's residual income?
- Nantor Corporation has two divisions, Southern and Northern. The following information was taken from last year's income statement segmented by division: Total Company Southern Northern Sales $ 5,900,000 $ 3,640,000 $ 2,260,000 Contribution margin $ 2,600,000 $ 1,620,000 $ 980,000 Divisional segment margin $ 1,420,000 $ 1,080,000 $ 340,000 Net operating income last year for Nantor Corporation was $590,000. In last year's income statement segmented by division, what were Nantor's total common fixed expenses?Eacher Wares is a division of a major corporation. The following data are for the latest year of operations: Sales 24,480,000 Net operating assets 1,000,960 average operatign assets 4,000,000 the company minimum required rate of return 14% Required: a. What is the division's margin?b. What is the division's turnover?c. What is the division's return on investment (ROI)?d. What is the division's residual income?The Lagerstroemia Corporation was formed on January 1 of the current year. Calculate the Lagerstroemia Corporation'staxable income or loss for the current year given the following informationGross receipts $255,000Cost of goods sold 150,000Dividend income (from 10-percent-owned domestic corporation) 35,000Interest income 10,000Business expenses (other than organizational costs) 120,000Organizational costs expensed 5,000Taxable income/(loss) $