(Round to three significant digits.) The compan, Gilde Industries is a division of a major corporation. At the end of the year, Elway had 23,700,000 in operating assets. Dacker Products is a division of a major corporation. 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%. 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. = Operating Income - (Minimum required rate of, A: The costvolumeprofit analysis is conducted according to certain assumptions. Last year the division had total sales of $18,690,000, net operating income of $934,500, and average operating assets of $5,233,200. Calculate any changed ratios (round to four significant digits). Nakama Corporation is considering investing in a project that would have a 4 year expected useful life. a. Start your trial now! What was Swift Company's minimum required rate of return last year? If these calculators are upgraded at a total cost of $100,000, they can be sold for a total of $160,000. 1. Income, A: Investment center profit margin = Income / Sales *100, A: The turnover is calculated as : What is the return on investment for Division A? Last year, the division had total sales of $25,540,000, net operating income of $1,277,000, and average operating assets of $7,151,200. 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%. 19.23 B. b) Net operating income less the minimum required return on average operating assets. 2.09. The compan, Cabal Products is a division of a major corporation. Formula = turnover/ Average operating assets What is the div, Cabal Products is a division of a major corporation. The division's turnover is closest to: Multiple Choice O 10.86 O 3.76 O 0.35 O 2.89 This, A: Residual income = Operating income - (Average invested assets*Minimum required rate of return), A: Solution: Cost of Goods sold = $ 800000 Determine the return on investment for the Specialty Products Division for the past year. Multiple Choice 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. The income tax expense in year 2: The management of Leitheiser Corporation is considering a project that would require an initial investment of $57,000. 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 working capital would be released for use elsewhere at the end of the project. The following information is available for our company for the current year: Operating income $75,000 Average total assets $500,000 Net sales $750,000 Required rate of return 12% Calculate residual income. average Operating Assets is, A: Profit Margin = Income from Operations / Sales The following data are for the Akron Division of Consolidated Rubber, Inc.: Sales Net operating income Average operating assets Stockholders' equity Residual income $760,000 $ 46,000 $260,000 $ 76,000 $ 16,000 For the past year, the margin used in ROI calculations was: Multiple Choice 6.05% O O 8.72% O 10.00% 8.16% C. Experts are tested by Chegg as specialists in their subject area. 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 company's required rate of return is 18%. 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 $24,886,200, net operating income of $4,106,223, and average operating assets of $8,436,000. One division makes neoprene wetsuits. True or False, Sunk costs are never relevant in decision making. By reducing labor and other operating costs, the machine would provide annual cost savings of $35,000. Required: 1. The division's, Gilde Industries is a division of a major corporation. Dacker Products is a division of a major corporation. In year 3 the company would have to incur one-time renovation expenses of $96,000. Variable costs = Sales * Variable costs as a % of, A: ROI means return on investment. The following information relates to last year's operations at Swift Company: Residual Income $170,000, Net Operating Income $180,000, Sales $500,000, Average Operating Assets $ 100,000. ABC Industries is a division of a major corporation. a)Calculation of return on investments as follows under:-, A: Solution 1A to 1C We reviewed their content and use your feedback to keep the quality high. 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, Ash Wares is a division of a major corporation. Margin = NOI/Sales Compute the margin and turnover ratios for last year. (Ignore income taxes.) The company estimates that 60% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. If TARDIS produces at capacity, the per unit. The minimum required rate of return for performance eval, Fanfa Industries is a division of a major corporation. The division's minimum required rate of return is 10%. CONCEPTUAL CONNECTION Comment on why the ROI for Elway Company is relatively high (as compared to the lower ROI of a typical manufacturing company). (Round your answers to four significant digits.) A. Sugar beets are processed in batches. The following data are for the latest year of operations. Rotan Corporation keeps careful track of the time required to fill orders. (Selling price to Outside customers, A: Return on Investment is used to evaluate the profitability of an asset or an investment and the. Required: 1. (Round your answer up to the next whole unit.) a. 16.89% c. Revise the data in your worksheet as follows: Sales $40,000,000 Net operating income $4,400,000 Average operating assets $10,000,000 Minimum required rate of return 13% A. See Answer Question: Dacker Products is a division of a major corporation. Residual Income, A: Contribution margin for Business Division's = Sales - Variable expenses was not in equilibrium for a product or service. Denominator At the end of the year, Elway had 23,700,000 in operating assets. A. =. You are meeting with your new remote team for the first time. Sales = $490000 Carl Warren, Ph.d. Cma William B. Tayler, Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger. $1,040,640, and average operating assets of $3,902,400. The division's residual income is closest to $2,192,960, Residual income=net income-(average operating assets*required rate of return), residual income =$3,508,960-($9,400,000*14%). If the Accounts Payable Department is treated as a service department, what is Division As operating income? Xenold, Inc., manufactures and sells cooktops and ovens through three divisions: Home, Restaurant, and Specialty. last year, the combined margin for the entire company will be closest to: Net operating income = $672,000 + $151,200 = $823,200, Sales = $16,800,000 + $2,520,000 = $19,320,000. Calculate EVA for each division and for Xenold, Inc. 4. Margin c. Turnover d. Return on investment (ROI) 3. You can specify conditions of storing and accessing cookies in your browser. a. a; a, 10). a. The following data are for the most recent year of operations: Sales $ 37,880,000 Net operating income $ 3,508,960 Average operating assets $ 9,400,000 The company's minimum required rate of return 14 % The division's residual income is closest to: See answer Advertisement abdulmajeedabiodunac 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. 3.Share an example from your own experience when the market The firm uses two departments to manufacture these jerseys: the Cutting Department and the Sewing. Last year the division had total sales of $23,100,000, income of and average operating assets of $5,500,000. 15% Supler Corporation produces a part used in the manufacture of one of its products. 5. what is the minimum acceptable operating income. C) Have regularly scheduled performance reviews. | Sales | $900,000 | Net operating income | $36,000 | Stockholders' equity | $100,000 | Average operating assets | $180,000 | Minimum required rate of return | 15% Company A's return on investment (ROI, The following selected data pertain to the belt division of Allen Corp. for last year: Sales: $2,000,000 Average operating assets: $500,000 Net operating income: $300,000 Turnover: 4.0 Minimum required return: 18% How much is the residual income? If sales revenues are 20 percent greater than expected, what is the percentage increase in profits? Get access to this video and our entire Q&A library, What Is Residual Income? 9.8%, Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger, Carl Warren, Ph.d. Cma William B. Tayler, Dacker Products is a division of a major corporation. $4,088,960 Administrative expenses, A: Given that , = $136,950 / $415,000 Require, Cabal Products is a division of a Major Corporation. The following data are for the most recent year of operations: 4.44% b. The beet fiber can be sold as is for $30 or processed further for $29 to make the end product industrial fiber that is sold for $77. 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. assets $ 8,600,000 The company's minimum required rate of return 16 Compute the operating leverage based on the given income statement. 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. Understand what is residual income. Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be: The Tolar Corporation has 400 obsolete desk calculators that are carried in inventory at a total cost of $576,000. This shows, A: Target Rate of return: The following data are for the most recent year of operations: Vandenheuvel Corporation keeps careful track of the time required to fill orders. average Operating Assets is, A: Income statement is one of the financial statement being prepared by business for showing all. Eevee Company reported a contribution margin of 70,000 for Sylveon, A: Introduction:- ): Almendarez Corporation is considering the purchase of a machine that would cost $220,000 and would last for 9 years. b.If expenses could be reduced by $240,000 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on investment for the International Division? A: 1. The annual depreciation on the new machine would be $88,300. $67,500 b. True or False, In target costing, the cost of a product is the starting point and the selling price follows from the cost. 5. Last year the division had total sales of $27,615,900, net operating income of. $3,058,960; $4,248,960 $(3,277,840) Required: Compute the (1) operating income, (2) margin and turnover ratios, and (3) ROI. Net operating income Question: Dacker Products is a division of a major corporation. What is implied by space as a form of nonverbal communication? 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. a. a. an; an The company's tax rate is 30%. Maldonados minimum acceptable rate of return is 9%. Total sales $11650000 | Sales | $900,000 | Net operating income | $36,000 | Stockholders' equity | $100,000 | Average operating assets | $180,000 | Minimum required rate of return | 15% Company A's residual income is: A. He pays$4,424 in state taxes annually based on a state tax rate of 4%. The division's, Last year a division had total sales of $10,040,000, net operating income of $582,320, and average operating assets of $4,000,000. The following data are for the latest year of operations: Sales 5,820,000 dollars, Net operating income 436,500 dollars, Average operating assets 2, The Consumer Products Division of Mickolick Corporation had average operating assets of $490,000 and net operating income of $41,000 in August. Harry Parsons' annual salary is $112,600. (Note: Round answer to two decimal places.) following data are for the most recent year of operations: Sales $ Required: A. 2.How do we show equilibrium graphically? The company's minimum required rate of return is 12%. EVA = NOPAT - WACC x Capital Invested. Cabell Products is a division of a major corporation. Prepare a new income statement to support your answer. The company's minimum required rate of return is 12%. ), Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Daniel F Viele, David H Marshall, Wayne W McManus. As a result, Xenold stock has an opportunity cost of 5 percent over the 4 percent long-term government bond rate. 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. For the Small Appliances Division, calculate: a. The simple rate of return on the investment is closest to (Ignore income taxes. These assumptions are, A: Sales = $ 1000000 The comp, Aide Industries is a division of a major corporation. The following data are for the most recent year of operations: The company's minimum required rate of return14%. 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 $27,615,900, net operating income of $3,866,226, and average operating assets of $7,081,000. The following data are for the most recent year of operations: Sales $12,000,000 Net operating income $400,000 Average operating assets $2,500,000 Company's minimum required rate of return 10% The divisi, Esh Wares is a division of a major corporation. The return on investment is, A: ROI means return on investment which means how much returns or net income is getting generated on, A: Note: Some fixed cost are not allocable to the segment that type of cost are called Common fixed, A: RESIDUAL INCOME IS TYPICALLY USED TO ASSESS THE PERFORMANCE OF CAPITAL INVESTMENT , TEAM ,, A: Solution:- Investment in division X = 379,700, A: Break even sale is the amount which covers all the costs incurred by an entity but do not result in, A: The question is related to Residual Income or Retained Earnings. Use the DuPont formula to compute the return on investment and show (A) the profit margin, (B) the investment turnover, and (C) the return on investment. was not in equilibrium for a product or service. 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. 17.4% b. 4. Turnover = Sales River division Sales Revenue $1,200,000 Cogs and operating expenses 897,000 Net operating income 303,000 Average invested assets $1,110,000 Stream division Sales revenue $1,806,000, The following information relates to last year's operations at the Paper Division of Germane Corporation: Minimum required rate of return 15% Return on investment (ROI)18% Sales $810,000 Turnover (on operating assets) 5 times What was the Paper Division's, Division B had an ROI last year of 15%. Average operating assets b. Compute average operating assets. The formula for Residual income Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested assets of 180,000, and sales of 720,000. Prepare a segmented income statement for Xenold, Inc., for last year. Numerator The company's minimum required rate of return is 18%. The new machine would replace some old equipment that would be sold for scrap now, yielding $21,300. In order to best encourage their individual performance development, what should yo Last year the division had total sales of $24,240,000, net operating income of $2,278,560, and average operating assets of $6,302,400. 2.How do we show equilibrium graphically? 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? B. B) Ensure that team members understand the larger goals of the company The company's minimum required rate of return is 14%. CONCEPTUAL CONNECTION Briefly explain the meaning of ROI. 4.Explain why the market was out of equilibrium (what caused it to be out of equilibrium) and what needed to be done to bring the market back to equilibrium. Calculate Xenolds weighted average cost of capital. By automating the process, the company would save $133,500 per year in cash operating costs. The company's minimum required rate of return is 13%. Residual income can be defined as a remaining income left with the company after deducting the expenses made on the capital expenditures from the operating income. The following data are for the most recent year of operations: Sales $ This problem has been solved! Two intermediate products, beet fiber and beet juice, emerge from the crushing process. Communication The Norse Division of Gridiron Concepts Inc. experienced significant revenue and profit growth from 20Y4 to 20Y6 as shown in the following divisional income statements: There are no support department allocations, and the division operates as an investment center that must maintain a 15% return on invested assets. Turnover? Sales $38,000,000 Net Operating Income $2,800,000 Average Operating Assets $15,000,000 The com, Gaal Industries is a division of a major corporation. Xenolds total capital employed is 5.04 million (2,600,000 for the Home Division, 1,700,000 for the Restaurant Division, and the remainder for the Specialty Division). The following data are for the most recent year of operations: Sales $ 36,480,000 Net operating income $ 2,808,960 Average operating assets $ 8,000,000 The company's minimum required rate of return 16 % The division's margin used to compute ROI is closest to: A) 21.9% B) 29.6% C) 7.7% D) 35.1% Each division is evaluated as a profit center. The company's minimum required rate of return is 16%. Required: 1. Compute the margin and turnover ratios for each year. It depends upon the earnings after tax,, A: Formula; True or False, Opportunity costs represent costs that can be reduced by effective management of operations. The company. The division, Cabal Products is a division of a major corporation. Working capital in the amount of $10,000 would be required. A. The divi, Gilde Industries is a division of a major oorporation. Margin? The beet juice can be sold as is for $51 or processed further for $33 to make the end product refined sugar that is sold for $77. 4. Residual income is the income earned, A: Residual income = Operating income - Minimum required return 2. The division's return on investment (ROI) is closest to: The following data are for the Akron Division of Consolidated Rubber, Inc.: For the past year, the margin used in ROI calculations was: The Consumer Products Division of Goich Corporation had average operating assets of $1,300,000 and net operating income of. =$1,738,080$6,000,000=28.97%, A: Fixed cost is the cost that has been fixed at all levels of output. The division's residual income is closest to: A: Residual Income 37,080,000 Net operating income $ 3,108,960 Average operating $2,808,960 b. The company's minimum required rate of return is 18%. The compan, Gilde Industries is a division of a major corporation. Jarriot, Inc., presented two years of data for its Furniture Division and its Houseware Division. Dacker Products is a division of a major corporation. Compute the ROI and the margin and turnover ratios for each year for the Furniture Division. Agustin Industries is a division of a major corporation. Aide Industries is a division of a major corporation. True or False, In calculating the payback period where new equipment is replacing old equipment, any salvage value to be received on disposal of the old equipment should be deducted from the cost of the new equipment. Whereas, variable cost is the, A: Ratio analysis is a method of measuring the financial position of the organization with different, A: As posted multiple sub parts we are answering only first three sub parts kindly repost the. Residual income The Commercial Division of Galena Company has operating income of 12,680,000 and assets of 74,500,000. Margin, Turnover, Return on Investment Pelak Company had sales of 25,000,000, expenses of 17,500,000, and average operating assets of 10,000,000. (Round to four significant digits.) Prepare a segmented income statement for Xenold, Inc., for last year. A Required: 1. 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. Determine the profit margin, investment turnover, and return on investment for the Norse Division for 20Y420Y6. The division's margin is closest to A) 39.7% B) 47.6% C) 7.9% D), Iba Industries is a division of a major corporation. Cleaning ProductsDivision Operating income = $ 83300, A: RESIDUAL INCOME : ACCT 2402 Chapter-10 Quiz (Solutions) (1).docx. The division', Cabal Products is a division of a major corporation. 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. Dacker Products is a division of a major corporation. The following data are for the most recent year of operations: Sales $ 36,480,000 Net operating income $ 2,808,960 Average operating assets $ 8,000,000 The company's minimum required rate of return 16 % The division's residual income is closest to: Multiple Choice a. 4.40% b. B) Ensure that team members understand the larger goals of the company The company, Cabell Products is a division of a major corporation. 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. During the current year. 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. C) Have regularly scheduled performance reviews. An order the president gives based on the authority of the Constitution is called _____. The division's r, Iba Industries is a division of a major corporation. The Turnover = Net sales / average operating assets, A: Break even point means a point where firm is neither earning profit nor incurring any loss. 23.5% c. 4.9% d. 18.6%, ABC Industries is a division of a major corporation. Dacker Products is a division of a major corporation. First we need to calculate Net Operating, A: Margin = Operating income/Sales The division's turnover used to compute ROI is closest to: Serie Inc. reported the following results from last years operations: At the beginning of this year, the company has a $2,100,000 investment opportunity, If the company pursues the investment opportunity and otherwise performs the same as. First week only $4.99! Last year the division had total sales of $8,790,000, a net operating income of $428,400, and average operating assets of $3,000,000. 6. Fusce dui lectu, View answer & additonal benefits from the subscription, Explore recently answered questions from the same subject, Explore documents and answered questions from similar courses, Explore recently asked questions from the same subject. 2. Net operating income $1141700 Last year the division had total sales of $16,260,000, net operating income of. Gabbe Industries is a division of a major corporation. Last year the division had total sales of 26,050,000, net operating income of 1,745,350, and average operating assets of 6,512,500. Average investment = $416500 Know how to calculate residual income with examples. Residual, A: Note: Some fixed cost are not allocable to the segment that type of cost are called Common fixed, A: Formula for EVA ($15,000) b. Investment Turnover = Sales / Invested Assets The following data are for the most, The company's minimum required rate of return. What is the financial advantage (disadvantage) for the company from processing one batch of sugar beets into the end products industrial fiber and refined sugar rather than not processing that batch at all? Last year the division had total sales of $23,615,600, net operating income of $3,164,490, and average operating assets of $5,492,000. It analysis the organization's ability to increase its return on equity. Identify the articles that correctly complete the following sentence. An advantage of using ROI to evaluate performance is that it encourages the manager to reduce the investment in operating assets as well as increase net operating income. The company's minimum required rate of return is 12%. c. What is the division's return on investment (ROI)? A company's current net operating income is $16,800 and its average operating assets are $80,000. Turnover=NetoperatingincomeAverageoperatingassets, A: Break even sale is the amount which covers all the costs incurred by an entity but do not result in, A: Residual income for the division = Net income - average invested capital x Cost of capital, A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for. The company's minimum required rate of return is 15%. 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. 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 The company's minimum required rate of return is 12% The division s ma, Cooking Wares is a division of a major corporation. Division A has operating income of $900,000 before service department charges and makes 60,000 payments to vendors. 25% C. 33% D. 40%. Return on Investment = Net income / Average invested asset Minimum required return (8,000,000X16%)= 1,280,000, $2,808,960 - 1,280,000 = Residual Income - 1,528,960, This site is using cookies under cookie policy . ROI? A. 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. An outside supplier has offered to provide the annual requirement of 7,200 of the parts for only $13 each. Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the following income statement for the last year: At the beginning of last year, Elway had 28,300,000 in operating assets. Minimumacceptablereturnonassets=Total, A: EVA means net amount by which companys wealth is increased. True or False, If investment funds are limited, the net present value of one project should not be compared directly to the net present value of another project unless the initial investments in these projects are equal. Compute the margin of safety in dollars based on the given income statement.

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