Magnolia Company's Division A has operating income of $80,000 and assets of $400,000. The minimum acceptable return on investment is 12%. What is the residual income for the division?

Q: The New York division of Ram Co. had the following financial data for 2020: sales $600,000, average…

A: Return on investment means how much net income has been earned on average investment amount.…

Q: Presented below is information related to the Hokie Division of Lumber, Inc. Contribution margin…

A: Return on Investment: It is a measure of management effectiveness in utilizing assets at its…

Q: Westerville Company reported the following results from last year’s operations: Sales $ 1,500,000…

A: 1. The margin related to this investment opportunity Particulars Amount Sales $ 420000…

Q: GGX is the general manager of the Jung Division, and his performance is measured using the residual…

A: Residual income is the excess of the amount of the return on Investment (ROI) over a target amount…

Q: The Your Division had average operating assets totaling $150,000 last year. The minimum required…

A: Residual income = net operating income - average operating assets x minimum required rate of return

Q: The Marine Division of Pacific Corp. has average invested assets of $110,000,000. Sales revenue of…

A: Solution:- a)Calculation of Return on investments as follows under:- It Indicates how well an…

Q: What would be the total contribution to profit to the company as a whole for 10,000 units…

A: Selling Price for 10,000 units (10,000 * P21) P2,10,000 Relevant Cost:   Variable cost of…

Q: westerville company reported the following results from last year's operations: sales   $1,600,000…

A: An investment property is a piece of real estate purchased with the intention of generating a profit…

Q: Book of Life has a current return on investment of 10% and the company has established an 8% minimum…

A: Residual value = Annual controllable margin - Operating assets x minimum rate of return

Q: Division A of Kern Co. has sales of $350,000, cost of goods sold for $200,000, operating expenses of…

A: Formula Return on investment = (Sales-Cost of goods sold-Operating expenses)/Invested assets Where…

Q: The Magazine Division of XYZ publication Company had the following financial data for the year:…

A: Return on investment is one of the performance measure of the business. This is calculated by…

Q: The Ronowski Company has three product lines of belts—A, B, and C— with contribution margins of $3,…

A: Operating income: Income statement reports revenues and expenses from business operations, and the…

Q: On the last day of the financial year a division has operating assets with a total carrying amount…

A: Return on investment represents the income earned in return on the investment made by the company.…

Q: Magnolia Company's Division A has income from operations of $73,300 and assets of $353,500. The…

A: For any business firm, there is always a minimum acceptable income, i.e., the income that must be…

Q: A firm operated at 90% of capacity for the past year, during which fixed costs were $420,000,…

A: Operating profit can be defined as the profit that is earned from the day-to-day operations.

Q: A factory can product 240,000 units per year at its 100% capacity. The estimated production costs…

A: Costing: Costing is any system for assigning the costs of a business. Costing is a cost allocated or…

Q: Handle Fabrication is a division of a major corporation. Last year the division had total sales of…

A: Solution 1: Total net operating income for division after making additional investment = $2,100,000…

Q: The management estimates that the following costs and activity would be associated with the…

A: Absorption Costing Approach: In manufacturing, absorption costing is a method of costing that…

Q: (9) Mason Division had $1,176,000 in invested assets, sales of $1,252,000, income from operations…

A: Investment-Turnover Ratio shows efficiency of entity in deployment their funds to generate sales and…

Q: he Break Division

A: Operating income is used to calculate the profits or the entity's cash flow. A residual is an amount…

Q: Westerville Company reported the following results from last year’s operations: Sales $ 1,500,000…

A: Solution...     (1). Last year's margin  = Net income ÷ sales  = $375,000 ÷ $1,500,000  = 0.25  =…

Q: Schulz GmbH, a German company, set an 18 percent target rate of return for its U.S. division for the…

A: ROI = (Profit / Asset Invested) * 100     Residual Income :  Net Income - (Target cost of capital *…

Q: The Marine Division of Pacific Corp. has average invested assets of $120,000,000. Sales revenue of…

A: Return on investment = Operating income / Average invested assets where, Average invested assets =…

Q: The sales, income from operations, and invested assets for each division of Wren Company are as…

A: Residual Income = Income from Operations - Invested Assets x Minimum rate of return Residual Income…

Q: Mr. Sy is the general manager of the XXX Division, and his performance is measured using the…

A: Residual Income: Residual income in corporate finance means that excess income earned beyond the…

Q: If the minimum rate of return was 11% (instead of the percentage shown above), Division A's residual…

A: Information Provided: Minimum rate of return = 11% Operating Income = $81,900 Average Investment =…

Q: Schulz GmbH, a German company, set an 18 percent target rate of return for its U.S. division for the…

A: Return on investment (ROI) is a financial ratio which calculate the benefit an investor will receive…

Q: The Commercial Division of Galena Company has operating income of $106,240 and assets of $332,000.…

A: Calculation of minimum acceptable return on assets: Minimum acceptable return on assets=Total…

Q: Westerville Company reported the following results from last year’s operations:   Sales $…

A: 1. Margin related to this year’s investment opportunity = Net operating income/Sales Net operating…

Q: Consider the following data from two divisions of a company, P and Q:   Divisional P Q Sales $…

A: Working: Calculation of Division P's residual income (RI): Residual income = Net operating income -…

Q: Handle Fabrication is a division of a major corporation. Last year the division had total sales of…

A: Solution 1: Annual operating income of division after making additional  investment = $1,820,000 +…

Q: Magnolia Company's Division A has operating income of $125,500 and assets of $337,800. The minimum…

A: Residual income: Residulal income means excess of income earned over the desired income. Desired…

Q: Magnolia Company's Division A has operating income of $119,900 and assets of $327,100. The minimum…

A: Residual income: Residulal income means excess of income earned over the desired income. Desired…

Q: Best Sleep Company reported the following results from last year's operations: Sales $ 1,500,000…

A: Net operating income (investment opportunity)=Contribution-Fixed cost=$240,000×70%-$144,000=$24,000

Q: The current controllable margin for Henry Division is $93,000. Its current operating assets are…

A: Determine original return on investment.

Q: Madonna Company had the following results for its make-up division. Sales…

A: Controllable margin refers to the contribution margin remaining after the deduction of controllable…

Q: New Berlin Corporation has annual fixed costs of $800,000, variable costs of $48 per unit, and a…

A: The contribution margin is calculated as difference between sales and variable costs. The…

Q: Pankey Inc. has a $700,000 investment opportunity that would involve sales of $1,050,000, a…

A: Contribution = Sales x contribution margin ratio Operating Income = Contribution - Fixed expenses…

Q: Scottso Division has the following results for the year: * $1,080,000 Revenues Variable expenses…

A: Net income  = $1,080,000 - $440,000 - $400,000 = $240,000

Q: Channing Company has two divisions, S and T. The company's overall contribution margin ratio is 30%…

A: If Contribution margin ratio  = 25% Then variable cost = 100-25 = 75%

Q: 1- what is last years residual income?   2- what is the residual income of this years investment…

A: residual income = Net operating income - Minimum required return    in the given question it is said…

Q: , what will happen

A: Lets understand the basics. Residual income = Yield amount from investment - (Investment amount x…

Q: requires a minimum return on its investments of 15%, what is their residual income? NUBD Co has the…

A:

Q: The management of Lambda Corporation has received the following forecast for the next year. Sales…

A:

Q: For the coming year, Bernardino Company anticipates a unit selling price of $85, a unit variable…

A: Break-even analysis is the easiest form of cost-volume-profit analysis. Break-even analysis is used…

Q: Assume that Division Blue has achieved a yearly operating income of $162,000 using $973,000 of…

A: Residual income: It implies to the income that is earned by an investor beyond the minimum rate of…

Q: Handle Fabrication is a division of a major corporation. Last year the division had total sales of…

A: Average operating assets after investment = $7,300,000 + 700,000   = $8,000,000 Average operating…

Q: Blaser Division had $1,040,000 in invested assets, sales of $1,271,000, income from operations of…

A: Rate of return on investment = Net Income / Investment in assets