The minimum required rate of return for performance evaluation purposes is 9%. What is the Company's return on sales? $15,000 c. ($60,000) d. $60,0, Gaal Industries is a division of a major corporation. was not in equilibrium for a product or service. Eber Wares is a division of a major corporation. Harry Parsons' annual salary is $112,600. What is the sales margin? Required: A. 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. Last year the division had total sales of $23,800,000, net operating income of $2,903,600, and average operating assets of $7,000,000. 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. The company's minimum required rate of return is 12%. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that 143,750,000 of assets have been invested in the Consumer Products Division. Numerator Required: 1. At the end of the year, Elway had 23,700,000 in operating assets. The companys tax rate was 40%. 2.How do we show equilibrium graphically? e. Suggest an alternative performance measure for motivating division managers to accept new investment opportunities that would increase the overall company income and return on investment. $900,000 C. $660,000 D. $540,000. = 5.77%, A: Cost accounting is the branch of accounting that inspects the cost structure of a business. 90 A: Here in this question, we are required to calculate break even point for Division A. At what selling price per unit would the company be as well off as if it just sold the calculators in their present condition? 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. (Round to three significant digits.) First week only $4.99! Question: Dacker Products is a division of a major corporation. What if operating income for the Small Appliances Division was 2,000,000? 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. What was the Consumer Products Division's residual income in May? This shows, A: Target Rate of return: 5. The company's minimum required rate, Eban Wares is a division of a major corporation. Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested assets of 180,000, and sales of 720,000. Compute average operating assets. ANSWER= [1] OPTION-(D) IS THE CORRECT ANSWER.8.9%. If the balanced scorecard is correctly constructed, the performance measures should be independent of each other so that bad performance on one measure will not result in bad performance on another performance measure. Variable costs = Sales * Variable costs as a % of, A: ROI means return on investment. Data concerning the most recent year appears below: Sales $17,400,000 Net operating income $870,000 Average operating assets $4,000,000 What is the division's return on investment (ROI)? The formula for Residual income 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. Xenold, Inc., manufactures and sells cooktops and ovens through three divisions: Home, Restaurant, and Specialty. 25% C. 33% D. 40%. Sylveon and Glaceon. CONCEPTUAL CONNECTION Briefly explain the meaning of ROI. 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. $, Coolbrook Company has the following information available for the past year: River division Stream division Sales revenue $1,208,000 $1,819,000 Cost of goods sold and operating expenses 892,000 1,296,000 Net operating income $316,000 $523,000 Average inve, Coolbrook Company has the following information available for the past year: River Division Stream Division Sales revenue $1,209,000 $1,805,000 Cost of goods sold and operating expenses 887,000 1,300,000 Net operating income $322,000 $505,000 Average inve, Starship Corporation uses the residual income to evaluate the performance of its divisions. Compute the ROI and the margin and turnover ratios for each year for the Furniture Division. (Note: Round the answer for margin ratio to two decimal places.) The company, Cabell Products is a division of a major corporation. 3. 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 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. $ 9,900,000 Xenold, Inc., manufactures and sells cooktops and ovens through three divisions: Home, Restaurant, and Specialty. True or False, Fixed costs may be relevant in a decision. To drive customers to your website, you need to create, Multiple Choice Question 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. an; a 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. $4,088,960 Average Operating, A: Residual income is the excess net income over the minimum required rate of return a; an = INCOME FROM OPERATION - (MINIMUM RATE OF RETURN X INVESTED, A: Return on investment is the ratio of net income over investment which is used to evaluate the income, A: Return on investment = Net operating income / Average operating assets, A: Residual Income = Income from Operations -Invested Assets x Minimum rate of return These assumptions are, A: Sales = $ 1000000 2. The company would need to invest $168,000 in equipment that will have zero salvage value at the end of the project. 4.44% b. 2. Residual income is the income earned, A: Residual income = Operating income - Minimum required return In order to best encourage their individual performance development, what should yo The following data are for the latest year of operations. Last year the division had total sales of $23,870,000, net operating Income of $1,479,940, and average operating assets of $5,012,700. 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. 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. The division's, Cabal 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 $38,280,000 $ 3,708,960 $ 9,800,000 163 The division's margin used to compute ROI is closest to: Multiple Choice 0 37.8% 0 9.7% 0 . True or False, A complete income statement need not be prepared as part of a differential cost analysis. 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. He pays$4,424 in state taxes annually based on a state tax rate of 4%. ): Almendarez Corporation is considering the purchase of a machine that would cost $220,000 and would last for 9 years. Total assets were $470 million, current liabilities were $104,000,000, and $72,000,000 of the current liabilities are noninterest bearing. | 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. $67,500 b. , gh it was immature attempt at humor. Income, A: Investment center profit margin = Income / Sales *100, A: The turnover is calculated as : Explain the change in ROI from Year 1 to Year 2 for each division. First week only $4.99! The company's minimum required rate of return is 12%. 4. It, A: ROI (Return on Investment) is used to measure the efficiency of the business investment by, A: Margin = Earnings * 100/Sales Dacker Products is a division of a major corporation. Working capital in the amount of $10,000 would be required. The following data pertain to Turk Company's operations last year: Sales $900,000 Net operating income 36,000 Contribution margin $150,000 Average operating assets $180,000 Stockholders equity $100, If net operating income is $43,000, average operating assets are $215,000, and the minimum required rate of return is 12%, what is the residual income? What is, ABC Products is a division of a major corporation. Dacker Products is a division of a major corporation. $9, Ceder Products is a division of a major corporation. B. A variable interval schedule is one in which a response is reinforced only after an/a, b. unpredictable number of responses are made, c. specified number of responses are made. 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. an; an The division's residual income is closest to: A: Residual Income 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. 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. $3,866,226, and average operating assets of $7,081,000. The firm uses two departments to manufacture these jerseys: the Cutting Department and the Sewing. Residual value is a excess, A: Residual income = Income from operations - (Assets * Minimum acceptable return on assets), A: Residual income is the income earned over and above income at minimum required rate of return level., A: Reportable Segment: Reporting financial and descriptive information regarding reportable segments is, A: CALCULATION FOR RESIDUAL INCOME : Gabbe Industries is a division of a major corporation. Margin c. Turnover d. Return on investment (ROI) 3. The company's required rate of return is 18%. 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. = NET OPERATING INCOME - (AVERAGE OPERATING ASSETS X MINIMUM REQUIRED RATE OF, A: Given information Net operating income 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%. For the Cleaning Products Division, calculate: a. 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. What is the ROI? 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 division's r, Iba Industries is a division of a major corporation. Dacker Products is a division of a major corporation. Calculate Xenolds weighted average cost of capital. Turnover 1.5 Residual income ? Compute the operating leverage based on the given income statement. Compute the ROI and the margin and turnover ratios for each year for the Houseware Division. A) ($3,000), Eacher Wares is a division of a major corporation. Last year the division had total sales of $26,320,000, net operating income of $2,424,320, and average operating assets of $7,000,000. Start your trial now! Return on Investment = Net income / Average invested asset The company's minimum required rate of return is 12.50%. The following data are for the most recent year of operations: The company's minimum required rate of return. Residual income = Operating income - (Operating assets * Required rate of return), Become a Study.com member to unlock this answer! (Round your answer up to the next whole unit.) You can specify conditions of storing and accessing cookies in your browser. 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. (Round percentage your answer to 2 decimal places. | 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?
