< Prev Next > Question 7 --/1 View Policies Current Attempt in Progress The Fulmar Division of Sunland Company had an ROI of 25% when sales were $2400000 and controllable margin was $480000. What were the average operating assets? O $9600 O $600000 O $120000 O $1920000
Q: 3. Data $ 72,000,000 $ 3,600,000 $ 18,000,000 Sales Net operating income Average operating assets 6.…
A: a. ROI = $3,600,000$18,000,000=20% b. The minimum required rate of return =…
Q: Question 3: Mirbat Company's financial information is given in the table below. Year Sales (OMR)…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: Division Alpha Bravo Charlie Sales $ 363,000 Net operating income %24 43,560 24 78,375 Average…
A: Ratio analysis helps to analyze the financial statements of the company. The management can take…
Q: Assume sales are $150,000; Operating income is $30,000; and average operating assets are $75,000.…
A: As posted multiple question we are answering only first three kindly repost the unanswered questions…
Q: -/1 Question 4 View Policies Current Attempt in Progress ort Sunland Companyrecorded operating data…
A: Return on Investment (ROI: This is the financial ration that evaluates how efficiently the assets…
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…
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A: SOLUTION- FORMULAS= 1-DESIRED PROFIT=AVERAGE OPERATING ASSETS * ROI 2-UNITS MUST BE DIVISION SELL…
Q: Question 3:salalah Company's financial information is given in the table below. Sales (OMR) Fixed…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. CVP analysis…
Q: ngageNOWv2 | Online teachin X +…
A: Solution... Sales = $1,015,000 Variable cost = 63 % of sales = 63 % * $1,015,000 = $639,450…
Q: Next > < Prev Question 1 -/1 View Policies Current Attempt in Progress ort Sand Company had sales of…
A: Residual income: It is an amount by which an operating income (earnings) exceeds a minimum…
Q: Question 3: Mirbat Company's financial information is given in the table below. Year Sales (OMR)…
A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…
Q: eook Problem Walk Through Earleton Manufacturing Company has $3 bilion in sales and $722,500,000 in…
A: A fixed asset turnover ratio seems to be an indicator that assesses a corporation's ability to…
Q: Total sales 2,000,000 360,000 1,500,000 2,100,000 Profit Beginning total sales Ending total sales…
A: Return on investment is percentage profit earned on the investment that is earned over the period of…
Q: Robot manufacturing Company expected future earning OMR 100,000. Company's normal return OMR 25,000.…
A: Increase in earnings = Expected future earning - Normal return = OMR 100,000 - OMR 25,000 = OMR…
Q: Ave Change Over Last Year An Change the This Year Item Four Y Annual sales $2,700,000 +1.8% +2 Unit…
A: The right answer is e Withdrawal
Q: Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet…
A: Residual income refers to the leftover of operating profit after deducting all the costs of capital…
Q: Required:1. Compute the ROI and the margin and turnover ratios for each year for the…
A: Margin refers to the operating income expressed as a percentage of sales.
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A: Return on investment is a ratio that is calculated by taking net profit and cost of investment. It…
Q: 6-8
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A:
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A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Consider the following data from two divisions of a company, P and Q: Divisional P Q Sales $…
A: Introduction:- Residual income is amount of remaining operating profit after settle all costs of…
Q: --/1 Question 3 View Policies Current Attempt in Progress rt Bonita Industrieshad average operating…
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Q: View Policies Current Attempt in Progress A company has three product lines, one of which reflects…
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A: Margin means profit margin. It means ratio of Net Income with Sales of the business organisation.…
Q: CUMULATIVE NPV: (1,145,712) (721,091) (283,993) 166,026 629,4 RETURN ON INVESTMENT: 24.44%…
A: Needs to understand calculation of Return on Investment and Beak Even Point
Q: FIGURE 1-8 CUSTOMER RETENTION AND PROFITABILITY 70% Customer Retention Sales and Profit Performance…
A: Lost/ New customers=100,000-100,000×75%=100,000-75,000=25,000
Q: Sales Net operating income Average operating assets Margin mover turn on investment (ROI) Alpha 5…
A: Margin = Net operating income / Sales Turnover = Sales / Average operating asset Return on…
Q: Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris,…
A:
Q: X Company Y Company Amount Percent Amount Percent Sales s 148,000 100.00 S 148,000 100.00 Variable…
A: Margin of safety (MOS)=Actual Sales-Break even point in sales dollars
Q: -/1 Question 1 rences View Policies borations Current Attempt in Progress PLUS Support Jackson…
A: The correct answer is $11.50.
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Q: The following information is available for company X. 20X7 20X8 $ $ Profit 7,500 9,000 Sales…
A: We have the following information: Profit (20X7): $7,500Profit (20X8): $9,000 Sales (20X7):…
Q: (b) Assume the division is an investment center, and average operating assets were $1,000,000, The…
A: Return on investment (ROI) is used to determine the efficiency of investment by measuring the…
Q: Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z…
A: The question is related to Profitability Ratio based on sales. The return on Sales is calculated…
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- Q23 Selected data from Box Division's accounting records revealed the following: Sales $ 345,060 Average investment $ 200,100 Net operating income $ 24,300 Minimum rate of return (divisional cost of capital) 11% Box Division's return on sales (ROS) is: (Round your percentages to one decimal place.) Multiple Choice 11.1%. 4.1%. 7.0%. 19.2%. 12.1%.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.Provide the missing information (A-H) in the table. Use the formulas learned in Chapter 10. (Round to two decimal places.)SHOW ALL CALCULATIONS. ROUND MARGIN, TURNOVER and ROI TO TWO (2) DECIMAL PLACES. Alpha Division Beta Division Delta Division Sales A $420,000 G Operating assets B D $1,000,000 Net operating income $800,000 $21,000 $250,000 Margin 0.16 E 0.10 Turnover C F 2.50 Return on investment (ROI) 20.00% 15.00% H
- Simple ROI and Residual Income Calculations. Consider the following data: 1.) DIVISION X Y Z Invested Capital P2,000,000 (1)1,300,000 P1,250,000 Income (2) 100,000 P182,000 P 150,000 Revenue P4,000,000 P3,640,000 (3) 3,750,000 Income Percentage of Revenue 2.5% (4) 5% (5) 4% Capital Turnover (6) 2 (7) 2.8 3 Rate of Return on Invested Capital (8) 5% 14% (9) 12% Required: 1. Which division is the best performer 2. Suppose each division is assessed an imputed interest rate of 20% on invested capital. Compute the residual income for each division.Q35 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%.(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 opportunity
- 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 IIQuestion 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 0.14E6.14 (LO 4), AN The single-column CVP income statements shown below are available for Armstrong Company and Contador Company. Armstrong Co. Contador Co.Sales $500,000 $500,000Variable costs 240,000 50,000Contribution margin 260,000 450,000Fixed costs 160,000 350,000Net income $100,000 $100,000Instructions Compute the degree of operating leverage for each company and interpret your results.Assuming that sales revenue increases by 10%, restate the single-column CVP income statement from above for each company.Discuss how the cost structure of these two companies affects their operating leverage and profitability.Compute degree of operating leverage and evaluate impact of alternative cost structures on net income and margin of safety.
- Given the following information:SalesFixed ExpensesVariable Expensess5,0002,0001,750What would expected operating profit be if the company experienced a 10% increase in fixedcosts and a 100/0 increase m sales volume? a) $1,375. b) $1,550. c) $1,250. d) $1,750.CH11_HW_QA3_LA Required 1: Compute the company’s return on investment (ROI) for the period using the ROI formula stated in terms of margin and turnover. (Round your intermediate calculations and final answer to 2 decimal places.) Margin % Turnover ROI % Required 2: Using Lean Production, the company is able to reduce the average level of inventory by $95,000. (The released funds are used to pay off short-term creditors.) (Round your intermediate calculations and final answers to 2 decimal places.) Effect Margin % Turnover ROI % Required 3: The company achieves a cost savings of $14,000 per year by using less costly materials. (Round your intermediate calculations and final answers to 2 decimal places.) Effect Margin % Turnover ROI % Required 4: The company issues bonds and uses the proceeds to…Segment profitability analysis The marketing segment sales for Caterpillar, Inc., for a year follow: In addition assume the following information: A. Use the sales information and the additional assumed information to prepare a contribution margin by segment report. Round to two decimal places. In addition, calculate the contribution margin ratio for each segment as a percentage, rounded to one decimal place. B. Prepare a table showing the manufacturing margin, dealer commissions, and variable promotion expenses as a percent of sales for each segment. (Round whole percents to one decimal place.) C. Use the information in (A) and (B) to interpret the segment performance.
