estion Tesla Trading Ltd has two (2) divisions, Photovoltaic Equipment and High-Tech Batteries, The following information is provided for both divisions: High-Tech Batteries Photovoltaic Equipment Sales (H) 45.000,000 30,000,000 Costs () 34,500,000 20.250,000 Current assets () Non-current Assets () Controllable costs are typically 75% of divisional costs, the balance of 25% being allocated overheads from the head office. The overall company cost of capital is 15%. 7.500,000 6.000,000 22,500,000 9.000,000 Divisions are treated as investment centres. Required: a) Compute the following for the divisions and comment on your result; i. Absolute profit ii. Return on investment
Q: Market Inc. has two divisions, Talbot and Heather. Following is the income statement for the past…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Carter Industries has two divisions: the West Division and the East Division. Information relating…
A: Segment margin of an related segment for an company will be calculated by deducting all the required…
Q: Payne Ltd. has two divisions. The Compound Division makes QZ54, industrial compound, which is then…
A: Absorption costing, also known as absolute absorption costing, is a managerial accounting technique…
Q: Mnak Corporation has two divisions: the OT Products Division and the NT Products Division. The OT…
A:
Q: Perry Company has three divisions: R,S, and T. Division R's income statement shows the following for…
A: Sales = $ 1000000 Cost of Goods sold = $ 800000 Selling expenses = $ 100000 Administrative expenses…
Q: Tops Corporation is organized into two divisions, Manufacturing and Marketing. Both divisions are…
A: Given data, Production and sales=10,000 units. Revenue of manufacturing division=$3,000,000
Q: The Cook Corporation has two divisions--East and West. The divisions have the following revenues and…
A: Elimination of the west reduces the variable cost and traceable fixed costs but allocated common…
Q: Vaughn treats its divisions as profit centers and allows division managers to choose whether to sell…
A: Transfer Price means the price at which the one division of the company sells the goods or provides…
Q: Garcon Inc. manufactures electronic products, with two operating divisions, the Consumer and…
A: “Hey, since there are multiple questions posted, we will answer first three question. If you want…
Q: The operations of Bunga Raya Sdn Bhd (BRSB) are divided into the Fix Division and the Split…
A: Following calculations shows the income statement if Split Division is removed: Formulation:…
Q: Garcon Inc. manufactures electronic products, with two operating divisions, the Consumer and…
A: The income statement represents the net income of the company which includes the revenue and…
Q: FamaNyame Company has three divisions : Ess,Wae, and Zee. Division Ess' income statement shows the…
A: Decision to continue or eliminate a division in an organization is taken by the management by…
Q: Conference Co has a divisionalised structure. One of its divisions, Division X, sells all of its…
A: Calculation of total cost : Particulars Amount Direct material $22,500 Direct labour…
Q: A and B are two divisions of a company. A makes two products, Product A and Product B. Product A is…
A: Variable cost changes with different levels of production i.e. higher the production more will be…
Q: The operations of Smits Corporation are divided into the Child Division and the Jackson Division.…
A: The Operating income if the Jackson Division was dropped can be calculated by comparing the changes…
Q: Timekeeper Corporation has two divisions, Distribution and Manufacturing. The company's primary…
A: Total cost per unit of Manufacturing divisions = Variable costs per unit + Fixed costs per unit =…
Q: Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division…
A: Net operating income: net operating income is the income generated by the company from its operation…
Q: Nicholas Technologies operates two divisions: Hardware Services and Software Services. During the…
A: Contribution Margin = Sales - Variable Cost Responsibility Margin = Contribution Margin -…
Q: residual income for the division
A: Residual income = Income from operations - (Assets * Minimum acceptable return on assets)
Q: The Components Division produces a part that is used by the Goods Division. The cost of…
A: These divisional costs of capital reflect both the differential required returns of equity…
Q: Cleene Division of Soaphen Corporation produces soap, 20% of which are sold to Bubbly Division of…
A: The net profit of a company is calculated by deducting the expenses from the sales revenues.
Q: BrightTech Ltd has two Divisions that manufacture and sell agricultural products: Lawn and Tree…
A: Here net profit = Operating income Cost of investment = total assets at net book value
Q: If the company eliminates the Western Division and the Eastern Division sales increase by 10% as a…
A: Given in the question: There are two divisions of the company which are the western division and…
Q: Faune Furniture Co. consists of two divisions, Bedroom Division and Dining Room Division. The…
A: Sales mix percentage can be identified by dividing individual sales by total sales of divisons.
Q: Exoplex Industries Inc. is a diversified aerospace company, including two operating divisions,…
A: Hey, since there are multiple requirements posted, we will answer first three requirements. If you…
Q: The Consumer Division of Galena Company has income from operations of $50,430 and assets of…
A: Residual income means income from operations after meeting the target of minimum acceptable return…
Q: Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products…
A: Income statement: Income statement is the financial statement which shows the financial performace…
Q: Bible Corporation has two divisions: the OT Products Division and the NT Products Division. The OT…
A: OT Products Division's divisional segment margin P2,55,000 NT Products Division's divisional…
Q: Nicholas Technologies operates two divisions Hardware Services and Software Services. During the ce…
A: The income statement represents the net income or net loss that is calculated by deducting the…
Q: In each of the cases below, assume Division X has a product that can be s customers or to Division Y…
A: Transfer price: Transfer price is the price that one division of a company will pay to another…
Q: he operating income and the amount of invested assets in each division of Conley Industries are as…
A: a. Retail division Commercial division Internet division Operating division 9600000 12100000…
Q: Garcon Inc. manufactures electronic products, with two operating divisions, the Consumer and…
A: An income statement is a part of the financial statement which indicates the financial performance…
Q: Birrell Scientific Inc. manufactures electronic products, with two operating divisions, the GPS…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Timekeeper Corporation has two divisions, Distribution and Manufacturing. The company's primary…
A: Transfer price per watch from the Manufacturing Division to the Distribution Division = Variable…
Q: . The Milbam Company has two divisions - East and West. The divisions have the following revenues…
A: Net profit means the difference between the income and expenses. Financial statement means the…
Q: Eevee Company consists of 2 divisions, Sylveon and Glaceon. Eevee Company reported a contribution…
A: GIVEN Sylveon and Glaceon. Eevee Company reported a contribution margin of ₱70,000 for Sylveon…
Q: Cabell Products is a division of a major corporation. Last year the division had total sales of…
A: RESIDUAL INCOME IS TYPICALLY USED TO ASSESS THE PERFORMANCE OF CAPITAL INVESTMENT , TEAM ,…
Q: Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products…
A: Net operating income is the residual value that is obtained after deducting all operating expenses…
Q: Selected sales and operating data for three divisions of different structural engineering firms are…
A: Ratio Analysis: Ratio analysis is a process of determining the relationship between accounting…
Q: Sunland, Inc. has three divisions: Bud, Wise, and Er. The results of operations for May, 2022 are…
A: The question is related to discontinuing a product. The details are given.
Q: ABC Corporation has three service department with the following costs and activity base: Service…
A: Activity base allocation for the accounting department is the number of the invoice processed. Cost…
Q: Balding, Ltd. is composed of 5 divisions. Each division is allocated a share of the overhead of…
A: Introduction: Net income, often known as net earnings, is a valuable indicator for company owners…
Q: Windmill Corp. has three manufacturing divisions, each of which has been Determined to be reportable…
A: Operating profit: Operating profit means the profit derived from the core business operation of any…
Q: BrightTech Ltd has two Divisions that manufacture and sell agricultural products: Lawn and Tree…
A: Profit is really not just like return on investment. ROI is concerned with the money you put in the…
Q: Timekeeper Corporation has two divisions, Distribution and Manufacturing. The company's primary…
A: Operating income = Sales - variable cost - Fixed costs Given information Sales units = 100,000…
Q: Ajax Division of Soap Corporation produces soap, 20 percent of which are sold to Axion Division of…
A: Transfer pricing is a pricing methodology which is used to set prices to transfer products between…
Q: VW Enterprises operates three product lines. The most recent product line (division) income…
A: Decision Making - It is the process of making decision by identifying different choices, gathering…
* Explain in full detail
Step by step
Solved in 2 steps with 3 images
- (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 opportunityXYZ Company has two divisions, A and B. Information for each division is as follows: A B Net earnings for division P 40,000 P 260,000 Asset base for division P100,000 P1,200,000 Target rate of return 15% 18% Margin 10% 20% Weighted average cost of capital 12% 12% What is the operating asset turnover for A? 0.15 0.10 4.00 2.50 Group of answer choices 1 2 3 4Question 10.2 Provide the missing data for the following situations: Red Division White Division Green Division Sales A $10,000,000 E Net operating income $240,000 $500,000 $288,000 Total assets B C $1,600,000 Return on investment 0.16 0.10 F Return on sales 0.05 D 0.14
- Q6 Selected data from Box Division's accounting records revealed the following: Sales $ 825,000 Average investment $ 440,000 Net operating income $ 66,000 Minimum rate of return (divisional cost of capital) 14% Box Division's asset turnover (AT) is calculated to be: (Round your answer to three decimal places.) Multiple Choice 4.270. 1.070. 1.875. 12.500. 1.625.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.Q1 BrightTech Ltd has two Divisions that manufacture and sell agricultural products: Lawn and Tree Divisions. The following historical cost accounting data relate to Lawn and Tree Divisions for the year 2020: Lawn Tree Revenues 2,200,000 1,000,000 Variable costs 520,000 240,000 Fixed costs (excluding depreciation) 300,000 280,000 Plant depreciation 250,000 70,000 Operating income 1,130,000 410,000 Divisional assets (at Gross Book Value) 1,800,000 600,000 Accumulated depreciation (350,000) (160,000) Divisional assets (at Net Book Value) 1,450,000 440,000 BrightTech's CEO has $400,000 available to invest in one project in either Lawn or Tree Division. The expected operating income for this investment is $115,000 in 2021. The company's required return on investment is 25%. Required: (a) Calculate the ROI of each…
- The West Bank Company has three product lines as following: A B C Total Estimated Sales in Units 25000 100000 50000 175000 SP/ unit $10 $12 $7 VC/ unit ( $5) ($8) ($4) CM/ unit $5 $4 $3 FC for company $351000 Required: What is the operating income?1) The total assets of Best Service is P500,000. Twenty percent (20%) represents the claim of the owner. Its liability, therefore is: a. P100,000 b. P400,000 c. P500,000 d. None 2) The owner’s capital is P50,000. The creditors have 60% claim on the total assets. The correct amount of assets would be: a. P 83,333 b. P 80,000 c. P 30,000 d. P125,000Compare FedEx and UPS FedEx Corporation (FDX) and United Parcel Service, Inc. (UPS) compete in the package delivery business. The major fixed assets for each business include aircraft, sorting and handling facilities, delivery vehicles, and information technology. The sales and average book value of fixed assets reported on recent financial statements for each company were as follows: FedEx UPS Sales (in millions) 50365 60,906 Average book value of fixed assets (in millions) 22,580 18,576 a. Compute the fixed asset turnover ratio for each company. Round to one decimal place. b. Which company appears more efficient in using fixed assets? c. Interpret the meaning of the ratio for the more efficient company.
- XYZ Company has two divisions, A and B. Information for each division is as follows: A B Net earnings for division P 40,000 P 260,000 Asset base for division P100,000 P1,200,000 Target rate of return 15% 18% Margin 10% 20% Weighted average cost of capital 12% 12% What is the total sales amount for B? P666,667 P800,000 P1,300,000 P1,200,000 Group of answer choices 1 2 3 4Required information The Foundational 15 (Algo) [LO11-1, LO11-2] Skip to question [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year’s operations: Sales $ 1,400,000 Variable expenses 510,000 Contribution margin 890,000 Fixed expenses 610,000 Net operating income $ 280,000 Average operating assets $ 875,000 At the beginning of this year, the company has a $175,000 investment opportunity with the following cost and revenue characteristics: Sales $ 280,000 Contribution margin ratio 50 % of sales Fixed expenses $ 98,000 The company’s minimum required rate of return is 15%. Foundational 11-8 (Algo) 8. If the company pursues the investment opportunity and otherwise performs the same as last year, what turnover will it earn this year? (Round your answer to 2 decimal places.)Required information The Foundational 15 (Algo) [LO11-1, LO11-2] Skip to question [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year’s operations: Sales $ 1,400,000 Variable expenses 510,000 Contribution margin 890,000 Fixed expenses 610,000 Net operating income $ 280,000 Average operating assets $ 875,000 At the beginning of this year, the company has a $175,000 investment opportunity with the following cost and revenue characteristics: Sales $ 280,000 Contribution margin ratio 50 % of sales Fixed expenses $ 98,000 The company’s minimum required rate of return is 15%. Foundational 11-7 (Algo) 7. If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year? (Round your percentage answer to 1 decimal place (i.e .1234 should be entered as 12.3))