Simple ROI and Residual Income Calculations: Consider the following data: Division Y P2,000,000 P1,250,000 P 182,000 P 150,000 P3,640,000 Invested capital Income Revenue P4,000,000 2.5% Income percentage of revenue Capital turnover Rate of return on invested capital 3. 14%

Simple ROI and Residual Income Calculations: Consider the following data: Division Y P2,000,000 P1,250,000 P 182,000 P 150,000 P3,640,000 Invested capital Income Revenue P4,000,000 2.5% Income percentage of revenue Capital turnover Rate of return on invested capital 3. 14%

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 4BE: Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested...

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

100%

please answer and show computation

Cha
9.34
If the investment turnover increased by 140% and ROS decreased by 25%, the ROI
would increase/decrease by

Simple ROI and Residual Income Calculations: Consider the following data:
Division
Y
P2,000,000
P1,250,000
P 182,000 P 150,000
Invested capital
Income
P4,000,000 P3,640,000
Revenue
2.5%
Income percentage of revenue
Capital turnover
Rate of return on invested capital
14%
3.

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