Compute the return on investment (ROI) for X Company.
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X Company, a division of a major oil company, provides various services to the operators of oil fields in the Middle East. Data concerning the most recent year appear below:
• Sales- P18,000,000
• Net operating ratio- 30%
• Average Operating assets- P36,000,000
Compute the return on investment (ROI) for X Company.
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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.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. What is the return on investment for Division A? A. 20% B. 25% C. 33% D. 40%X Company, a division of a major oil company, provides various services to the operators of oil fields in the Middle East. Data concerning the most recent year appear below:• Sales- P18,000,000• Net operating ratio- 30%• Average Operating assets- P36,000,000Compute the return on investment (ROI) for X Company • 25% • 20% • 15% • None of the above
- Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sales $ 17,900,000 Net operating income $ 5,200,000 Average operating assets $ 35,400,000 Required: Compute the margin. Note: Round your answer to 2 decimal places. Compute the turnover. Note: Round your answer to 2 decimal places. Compute the return on investment (ROI). Note: Round your intermediate calculations and final answer to 2 decimal places.Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sales $ 17,800,000 Net operating income $ 4,600,000 Average operating assets $ 35,300,000 Required: 1. Compute the margin. (Round your answer to 2 decimal places.) 2. Compute the turnover. (Round your answer to 2 decimal places.) 3. Compute the return on investment (ROI). (Round your intermediate calculations and final answer to 2 decimal places.)Alyeska Services Company, a division of a major oil company, provides various services to the operatorsof the North Slope oil field in Alaska. Data concerning the most recent year appear below:Sales ........................................................................ $7,500,000Net operating income .............................................. $600,000Average operating assets ........................................ $5,000,000Required:1. Compute the margin for Alyeska Services Company.2. Compute the turnover for Alyeska Services Company.3. Compute the return on investment (ROI) for Alyeska Services Company.
- The Magazine Division of XYZ publication Company had the following financial data for the year: Assets available for use P 1,000,000 BV P1,500,000 MV Residual income P 100,000 Return on investment 15% A. What was the Magazine Division’s segment income? B. If the manager of the Magazine Division is evaluated based on return on investment, how much would she willing to pay for an investment that promise to increase net segment income by P50,000?Solano Company has sales of $620,000, cost of goods sold of $430,000, other operating expenses of $51,000, average invested assets of $1,900,000, and a hurdle rate of 10 percent.Required:1. Determine Solano’s return on investment (ROI), investment turnover, profit margin, and residual income.2. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario’s impact on Solano’s ROI and residual income. (Note: Treat each scenario independently.)a. Company sales and cost of goods sold increase by 30 percent.b. Operating expenses decrease by $15,500.c. Operating expenses increase by 10 percent.The Break Division of Zoe motors Company had the following financial data for the year: Assets available for use P 1,000,000 BV P1,500,000 MV Residual income P 100,000 Return on investment 15% A. What was the Break Division’s segment income? B. If the manager of the Break Division is evaluated based on return on investment, how much would she willing to pay for an investment that promise to increase net segment income by P50,000?
- Please fast by formula only so i can copy..Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska, Data concerning the most recent year appear below: Sales: $18,800,000 Net Operating Income: $5,100,000 Average Operating Assets: $35,100,000 1. Compute the margin. 2. Compute the turnover 3. Compute the return on investment (ROI)Jacob Products is a division of a major corporation. Last year the division had total sales of P26,800,000, net operating income of P1,768,800, and average operating assets of P8,000,000. The company's minimum required rate of return is 12%. The division's residual income is closest to: A) P 808,800 B) P 1,768,800 C) P (1,447,200) D) P 2,728,800 Show solutionThe X Division of XYZ Chemical Co. produced the following operating results for the previous year: Sales $10,000,000; Segment income 1,500,000; Assets 6,000,000. The X Division is considering a $1,000,000 investment in a new project. Minimum required return for XYZ Chemical Company is 20%. If the X Division is evaluated using ROI, how much net income should be generated by the new investment for the X Division to consider investing in it?