Last year the division had total sales of $21,720,000, net operating income of $1,346,640, and average operating assets of $4,778,400. What is, Daab Products is a division of a major corporation. Data concerning the most recent year appears below: Sales $17,950,000 Net operating income $1,005,200 Average operating assets $4,890,000 The division's margin is closest to: A. If sales revenues are 20 percent greater than expected, what is the percentage increase in profits? A new project being considered would require an investment of $15,000 and would generate annual net operating income of $3,000. The following data are for the latest year of operations: Sales $10,000,000 Net operating income $950,000 Average operating assets $4,000,000 The compa, I) The following information is available for our company for the current year: operating income, $45,000; average total assets, $400,000; net sales, $900,000; and required rate of return, 12%. 5. The minimum required rate of return for performance eval, Fanfa Industries is a division of a major corporation. Income, A: Investment center profit margin = Income / Sales *100, A: The turnover is calculated as : If expenses could be reduced by 3,450,000 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on investment for the Consumer Products Division? The following data are for the latest year of operations: Sales $5,820,000 Net operating income $436,500 Average operating assets $2,000,000 T. The Portland Division's operating data for the year 2015 is as follows: Return on investment - 12% Minimum required rate of return - 10% Average net operating assets - $500,000 Sales - $1,600,000 Compute the net operating income of 2015. $25,800 b. ABC Products is a division of a major corporation. The new machine would replace some old equipment that would be sold for scrap now, yielding $21,300. You are meeting with your new remote team for the first time. Repeat, using the contribution margin ratio. (Round your percentage answer to 2 decimal places.). The divisions projected income statement for the coming year is as follows: Required: 1. In order to best encourage their individual performance development, what should yo d. Why might the manager of the Specialty Products Division decide to reject the new product line? was not in equilibrium for a product or service. The following data are for the most recent year of operations: Sales $ This problem has been solved! The following data are for the most recent year of operations: Sales | $11,520,000 Net operating | $322,560 Average operating assets | $3,000,00, The following information is available on Company A. Createyouraccount, The division's residual income is $1,748,960 (d). The following data are for the most recent year of operations: Sales Net operating income Average operating assets The company's minimum required rate of return $37,580,000 $ 3,358,960 $ 9,100,000 14% The division's margin used to compute ROI is closest to: Multiple Choice 33.2% O 36.9% o 24.2% 8.9% Eevee Company reported a contribution margin of 70,000 for Sylveon, A: Introduction:- Residual Income, A: Contribution margin for Business Division's = Sales - Variable expenses How many units must be sold to earn an after-tax profit of 1.254 million? A The division's r, Iba Industries is a division of a major corporation. Last year the division had total sales of $21,120,000, net operating income of $2,006,400, and average operating assets of $6,000,000. Justify your choice, 1.Explain where the market equilibrium occurs. The company uses straight-line depreciation on all equipment. a; a, 10). Round percentages to one decimal place and the investment turnover to two decimal places. Requ, Cabal Products is a division of a major corporation. B. You have been asked to analyze the possible reasons the Specialty Products Division manager rejected the new product line. 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. Required: 1. Dacker Products is a division of a major corporation. Eber Wares is a division of a major corporation. The company's minimum required rate of return is 12%. The working capital would be released for use elsewhere at the end of the project. following data are for the most recent year of operations: Sales $ Sylveon and Glaceon. Compute the Division's Profit Margin Last year, the division had total sales of $12,880,000, net operating income of $837,200, and average operating assets of $2,833,600. What is the ROI? Dacker Products is a division of a major corporation. (Round to four significant digits.) 2. (Note: Round the answer for margin ratio to two decimal places.) The following data are for the most recent year of operations: Sales$ 37,880,000Net operating income$ 3,508,960Average operating assets$ 9,400,000The company's minimum required rate of return14%. $9, Ceder Products is a division of a major corporation. The company would need to invest $168,000 in equipment that will have zero salvage value at the end of the project. Last year the division had total sales of $21,500,000, net operating income of $576,100, and average operating assets of $5,100,000. The following data are for the most recent year of operations: The division's margin used to compute ROI is closest to: Multiple Choice 34.4% 37.5% 25.0% 9.4% Expert Solution Want to see the full answer? Margin c. Turnover d. Return on investment (ROI) 3. Last year, the division had total sales of $21,520,000, net operating income of $538,000, and average operating of $8,000,000. 4. The company's minimum required rate of return is 12%. Compute the ROI and the margin and turnover ratios for each year for the Furniture Division. Required: 1. Profit margin, investment turnover, and return on investment The condensed income statement for the International Division of Valgenti Inc. is as follows (assuming no service department charges) The manager of the International Division is considering ways to increase the return on investment. Without preparing a new income statement, determine by how much profits are underestimated. c. Determine the estimated return on investment for the new product line. $119,300 in May. $3,058,960; $4,248,960 $(3,277,840) No other cash outflows would be required. 37,080,000 Net operating income $ 3,108,960 Average operating % The division's residual income is closest to: Experts are tested by Chegg as specialists in their subject area. Data for the segment and for the company for March appear below: In addition, common fixed expenses totaled $210,000 and, Hardigree Corporation makes a product that has the following direct labor standards: Standard direct labor-hours0.3hours per unitStandard direct labor rate$23.00per hour In May the company's budgeted, Casivant Corporation makes a product that uses a material with the following direct material standards: Standard quantity3.8pounds per unitStandard price$4.00per pound The company produced, Majer Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard Price or RateStandard Cost Per UnitDirect materials6.4ounces$3.00per ounce$19.20Direct, Waterfall, Ltd. manufactures custom basketball jerseys for professional basketball teams. The company. The company's minimum required rate of return is 14%. The company, Baad Industries is a division of a major corporation. a. What is the return on investment for Division A? Question: Dacker Products is a division of a major corporation. If the Accounts Payable Department is treated as a service department, what is Division As operating income? The divisions have the following revenues and expenses for June 2022: Cassette Vinyl CD Revenues $82,000, The TARDIS Corporation produces and sells a single product--Sonic Screwdrivers. 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. Last year the division had total sales of $27,615,900, net operating income of. B) Ensure that team members understand the larger goals of the company 25% C. 33% D. 40%. The divi, Gilde Industries is a division of a major oorporation. Last year the division had total sales of $12,270,000, net operating income of $834,360, and average operating assets of $3,190,200. During the current year. The division's residual income is closest to: Cabell Products is a division of a major corporation. What is, Operating data from Tindall Company for last year follows: Sales $900,000 Stockholders' equity $500,000 Return on investment 12% Average operating assets ? The compan, Cabal Products is a division of a major corporation. c. What is the division's return on investment (ROI)? 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. 5% c. 8.89% d. 11.25%, Esh Wares is a division of a major corporation. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. Prepare a segmented income statement for Xenold, Inc., for last year. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. A: a. The division's, Gilde Industries is a division of a major corporation. The divisional manager has decided to increase the advertising budget by 140,000 and cut the average selling price to 200. Supler Corporation produces a part used in the manufacture of one of its products. 4.40% b. The division's margin used to compute ROI is closest to: Lowest Acceptable tranfer price = NET OPERATING INCOME - (AVERAGE OPERATING ASSETS X MINIMUM REQUIRED RATE OF, A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for, A: Return on investment (ROI) is a performance statistic used to evaluate the efficiency or, A: ROI means Return on investment by the company which says that how much net income is earned on, A: Return on investment = Net operating income / Average operating assets, A: Return on investment represents the profit earned on an investment made. Cash Vs Debit Card Net Profit = sales - cost of goods, A: Residual income means the income that one might continue to receive even after completion of the, A: Note:- Since you have posted a question with multiple sub-parts, we will solve the first three, A: Working Note: Inc. During the most recent year, Macon had a net income of $40 million. a; an Katayama Company produces a variety of products. The company's minimum required rate of return is 22%. If expenses could be reduced by 3,450,000 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on investment for the Consumer Products Division? Last year, the division had total sales of $10,040,000, net operating income of $582,320, and average operating assets of $4,000,000. Last year the division had total sales of $20,070,000, net operating income of $1,063,710, and average operating assets of $4,415,400. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Compute the margin and turnover ratios for last year. The minimum required rate of return for performance evaluati, Beall Industries is a division of a major corporation. ABC Industries is a division of a major corporation. a) What is t. Division B had an ROI last year of 15%. Xenold, Inc., manufactures and sells cooktops and ovens through three divisions: Home, Restaurant, and Specialty. Last year the division had total sales of $11,440,000, net operating income of $686,400, and average operating assets of $2,402,400. Last year the division had total sales of $24,040,500, net operating income of $3,726,278, and average operating assets of $7,755,000. Sugar beets are processed in batches. True or False, A shorter payback period does not necessarily mean that one investment is more desirable than another. If the division's average operating assets last year were $450,000, then the division's residual income for last year was .. Cabal Products is a division of a major corporation. As a result, Xenold stock has an opportunity cost of 5 percent over the 4 percent long-term government bond rate. 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. $900,000 C. $660,000 D. $540,000. The company uses the residual income to evaluate the performance of its divisions, with a minimum required rate of return, Brandon Inc. has provided the following data for last year's operations: Sales $100,000 Net Operating Income $6,000 Average Operating Assets $40,000 Stockholders' equity $25,000 The minimum requi, Brandon Inc. has provided the following data for last year's operations: Sales $100,000 Net operating income $6,000 Average operating assets $40,000 Stockholders equity $25,000 Minimum required a rat. a. $3,866,226, and average operating assets of $7,081,000. The condensed income statement for the Consumer Products Division of Tri-State Industries Inc. is as follows (assuming no support department allocations): The manager of the Consumer Products Division is considering ways to increase the return on investment. Average Operating, A: Residual income is the excess net income over the minimum required rate of return EVA = NOPAT - WACC x Capital Invested. Following is thecalculation Division Margin used to compute ROI closest to for Dacken as follows- Margin = Net Opreat, Dacker Products is a division of a major corporation. The division's minimum required rate of return is 10%. a. Last year the division had total sales of $21,300,000, net operating income of $575,100, and average operating assets of $5,000,000. Residual income The Commercial Division of Galena Company has operating income of 12,680,000 and assets of 74,500,000. ROI and residual income are tools used to evaluate managerial performance in investment centers. b. All rights reserved. If the division's average operating assets last year were $450,000, then the division's residual income for last year was: a. Operating income = $ 83300, A: RESIDUAL INCOME : 2. The following data are for the most recent year of operations: $38,380,000 $ 3,758,960 $ 9,900,000 Sales Net operating income Average operating assets The company's minimum required rate of return 15% The division's margin used to compute ROI is closest to: Multiple Choice 35.6% 38.0% 25.8% 9.8%, Managerial Accounting: The Cornerstone of Business Decision-Making. You can specify conditions of storing and accessing cookies in your browser, Dacker Products is a division of a major corporation. The following data are for the latest year of operations. Net operating income A) Set clear expectations for each team member, with SMART goals. Jarriot, Inc., presented two years of data for its Furniture Division and its Houseware Division. To drive customers to your website, you need to create, Multiple Choice Question The company's minimum required rate of return is 13%. Check out a sample Q&A here See Solution star_border $22,500 c. $37,500 d. $, Coolbrook Company has the following information available for the past year: River Division Stream Division Sales revenue $1,202,000 $1,810,000 Cost of goods sold and operating expenses $898,000 $1,281,000 Net operating income $304,000 $529,000 Average in, Coolbrook Company has the following information available for the past year: River Division Stream Division Sales revenue $1,210,000 $1,805,000 Cost of goods sold and operating expenses 896,000 1,284,000 Net operating income $314,000 $521,000 Average inv, ABC Company is a division of XYZ Company. Last year the division had total sales of $17,540,000, net operating income of $1,438,280, and average operating assets of $4,735,800. A bonus is paid, in 8,000 increments, for each whole percentage point that the divisions return on investment exceeds the company average. The following data are for the latest year of operations: Sales $14,720,000 Net operating income $1,000,960 Average operating assets $4,000,000 The, Eacher Wares is a division of a major corporation. $38,380,000 (Round your answer up to the next whole unit.) Last year the division had total sales of $36,160,000, net operating income of $2,892,800, and average operating assets of $8,000,000. $67,500 b. 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%. Dacker Products is a division of a major corporation. a; an 4. Residual Income The Avila Division of Maldonado Company had operating income last year of 136,400 and average operating assets of 1,900,000. The following data are for the most recent year of operations: Sales$36,980,000 Net operating income$3,058,960 Average operating assets$8,500,000 The company's minimum required rate of return 14% The division's residual income is closest to: Multiple Choice. Annual incremental sales would be $520,000 and annual cash operating expenses would be $300,000. The company's minimum required rate of return Carl Warren, Ph.d. Cma William B. Tayler, Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger. The division's turnover is closest to: Multiple Choice O 10.86 O 3.76 O 0.35 O 2.89 The following data are for the last year of operations: Sales $16,640,000 Net operating income $399,360 Average operating assets 4,000,000 The companies minimum required rate of return 18% a) The di, Cabal Products is a division of a major corporation. The following data are for the latest year of operations: Sales $24,900,000 Net operating income 900,400 Average operating assets 6,000,000 Corporation's minimum required rate of return 12% Required: a, Eacher Wares is a division of a major corporation. = Contribution Margin / Sales It basically signifies the percentage return earned by an entity on, A: The following information Given in the question: Explain the change in ROI from Year 1 to Year 2 for each division. The company's minimum required rate of return is 12%. Last year the division had total sales of $26,110,000, net operating income of $1,801,590, and average operating assets of $7,000,000. Assume a tax rate of 34 percent. A. These assumptions are, A: Sales = $ 1000000 Gabbe Industries is a division of a major corporation. C) Have regularly scheduled performance reviews. Dacker Products is a division of a major corporation. Last year the division had total sales of $23,878,800, net operating income of $3,056,486, and average operating assets of $8,844,000. Start your trial now! Working capital in the amount of $10,000 would be required. copyright 2003-2023 Homework.Study.com. What is the residual income for the division? A: 1) The unit product cost is $21, computed as follows: ANSWER= [1] OPTION-(D) IS THE CORRECT ANSWER.8.9%. 1. Last year the division had total sales of $10,400,000, net operating income of $540,800, and average operating assets of $2,392,000. The minimum required rate of return for performance evaluation purposes is 9%. Each division is evaluated as a profit center. a.Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the International Division, assuming that $20,000,000 of assets have been invested in the International Division. The following data are for the most recent year of operations: Sales $11,520,000 Net operating income $322,560 Average operating assets $3,000,000 The company's minimum required rate of return 10% The di. Maldonados minimum acceptable rate of return is 9%. The division', Cabal Products is a division of a major corporation. Compute: - The divis, Cabell Products is a division of a major corporation. Dacker Products is a division of a major corporation. ROI = Earnings * 100/Average operating assets, A: Break even Sales=FixedcostsxSalesSales-VariableCosts, A: solution : ), Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Daniel F Viele, David H Marshall, Wayne W McManus. Compute the margin and turnover ratios for each year. The company's minimum required rate of return is 15%. Last year the division had total sales of $12,310,000, net operating income of $720,000, and average operating assets of $4,000,000. Residual income = Operating income - (Operating assets * Required Our experts can answer your tough homework and study questions. $8,600 c. $60,200 d. $17,200. The company estimates that 60% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. =$1,738,080$6,000,000=28.97%, A: Division return on investment = Net profit / Average total assets We reviewed their content and use your feedback to keep the quality high. Residual income Last year the division had total sales of $16,260,000, net operating income of $1,040,640, and average operating assets of $3,902,400. Dacker Products is a division of a major corporation. 4. 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. Cabell Products is a division of a major corporation. (Note: Round all answers to two decimal places.) a. CONCEPTUAL CONNECTION Briefly explain the meaning of ROI. See Answer Question: Dacker Products is a division of a major corporation. Identify the articles that correctly complete the following sentence. Compute ROI. The companys tax rate was 40%. The company', Aide Industries is a division of a major corporation. was not in equilibrium for a product or service. Data concerning the most recent year appears below: Sales $18,080,000 Net operating income $940,160 Average operating assets $4,810,000 The division's turnover is closest to: A. What was the Consumer Products Division's residual income in May? (Round your answers to four significant digits.) Last year the division had total sales of $21,300,000, net operating income of $575,100, and average operating assets of $5,000,000. Last year the division had total sales of $21,300,000, net operating income of $575,100, and average operating assets of $5,000,000. A batch of sugar beets costs $60 to buy from farmers and $19 to crush in the company's plant. What is, ABC Products is a division of a major corporation. Last year the division had total sales of $21,720,000, net operating income of $1,346,640, and average operating assets of $4,778,400. Calculate the residual income for the Avila Division. The firm uses two departments to manufacture these jerseys: the Cutting Department and the Sewing, Allocation of OH Costs - Waterfall, Ltd.; Background information Waterfall, Ltd. manufactures custom basketball jerseys for professional basketball teams. What are the invested capital and ROI for Macon? You can specify conditions of storing and accessing cookies in your browser. At the end of the year, Elway had 23,700,000 in operating assets. The following data are for the most recent year of operations: $38,380,000 $ 3,758,960 $ 9,900,000 Sales Net operating income Average operating assets The company's minimum required rate of return 15% The division's margin used to compute ROI is closest to: Multiple Choice 35.6% 38.0% 25.8% 9.8% Formula = turnover/ Average operating assets These actions will increase sales revenues by 1 million. For, A: Break even Sales=FixedcostsxSalesSales-VariableCosts, A: Rate of return on investment = Net Income / Investment in assets. 3. 4.44% b. What is the Company's asset turnover? Ravena Labs., Inc. makes a single product which has the following standards: Direct materials: 2.5 ounces at $20 per ounce Direct labor: 1.4 hours at $12.50 per hour Variable manufacturing overhead: Ferrar Corporation has two major business segments-Consumer and Commercial.
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