(2) 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 times recorded for a particular order appear below: Sunk costs are costs that have proven to be unproductive. 17.4% b. In year 3 the company would have to incur one-time renovation expenses of $96,000. 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. 5. Access to over 100 million course-specific study resources, 24/7 help from Expert Tutors on 140+ subjects, Full access to over 1 million Textbook Solutions. Calculate any changed ratios (round to four significant digits). a) $0, Dickonson Products is a division of a major corporation. 1. Turnover=NetoperatingincomeAverageoperatingassets, A: Return on investment is one of the profitability ratio which is being used in business. % The division's residual income is closest to: Experts are tested by Chegg as specialists in their subject area. The following data are for the most, The company's minimum required rate of return. The profitability index of the project is closest to (Ignore income taxes. Compute average operating assets. The company's minimum required rate of return is 12%. Residual income The Commercial Division of Galena Company has operating income of 12,680,000 and assets of 74,500,000. The division's margin is closest to: (a) 28.4% (b) 22.6% (c, Coolbrook company has the following information avaiable for past year. =, A: (1) Dacker Products is a division of a major corporation. an; an The following data are for the latest year of operations. 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. As an alternative, the calculators can be sold in their present condition for $40,000. 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. 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. The compan, Gilde Industries is a division of a major corporation. Compute ROI. The company's tax rate is 30%. Compute the ROI and the margin and turnover ratios for each year for the Houseware Division. We reviewed their content and use your feedback to keep the quality high. The Accounts Payable Department has expenses of $600,000 and makes 150,000 payments to the various vendors who provide products and services to the divisions. 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 company', Cabal Products is a division of a major corporation. The unit product cost is $21, computed as follows: Require, Cabal Products is a division of a Major Corporation. The annual depreciation on the new machine would be $88,300. At present, the ball is, Clyde's Comfort, Inc., produces and sells four different sizes of dog beds: Small, Medium, Large, and Extra Large. B. If sales revenues are 20 percent greater than expected, what is the percentage increase in profits? The new machine would replace some old equipment that would be sold for scrap now, yielding $21,300. (Note: Round answer to two decimal places.) Average investment = $416500 The company has a soccer ball that sells for $30 per ball. was not in equilibrium for a product or service. 38.0% Multiple Choice 3. Calculate Xenolds weighted average cost of capital. Last year the division had total sales of $24,048,000, net operating income of $2,765,520, and average operating assets of $6,012,000. / The division, Dickonson Products is a division of a major corporation. $8,600 c. $60,200 d. $17,200. 2. , gh it was immature attempt at humor. 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. One division makes neoprene wetsuits. Dacker Products is a division of a major corporation. a) What is t, Ash Wares is a division of a major corporation. Dacker Products is a division of a major corporation. Margin? The division's, Chace Products is a division of a major corporation. Calculate the residual income for the Avila Division. 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%. Net operating income Identify the articles that correctly complete the following sentence. Operating income = $ 83300, A: RESIDUAL INCOME : $38,380,000 First week only $4.99! The following data are for the most recent year of operations: Sales $ This problem has been solved! Dacker Products is a division of a major corporation. What is Harry's marital status, and how many dependents does he claim? ), Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Daniel F Viele, David H Marshall, Wayne W McManus. Cabell Products is a division of a major corporation. (Round to four significant digits.) Data for each division for last year are as follows (numbers in thousands): The income tax rate for Xenold, Inc., is 40 percent. True or False. 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. Question: Dacker Products is a division of a major corporation. 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. In January, the Commercial Products Division had average operating assets of $970,000 and a net operating inc, 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 Required rate of return 12% Calculate the profit margin. (Round your answers to four significant digits.) The company's minimum required rate, Eban Wares is a division of a major corporation. $25,800 b. B. (Round to four significant digits.) The divisional manager has decided to increase the advertising budget by 140,000 and cut the average selling price to 200. copyright 2003-2023 Homework.Study.com. The company's minimum required rate of return is 18%. As a result, Xenold stock has an opportunity cost of 5 percent over the 4 percent long-term government bond rate. If the Accounts Payable Department is treated as a service department, what is Division As operating income? This site is using cookies under cookie policy . A bonus is paid, in 8,000 increments, for each whole percentage point that the divisions return on investment exceeds the company average. a. following data are for the most recent year of operations: Sales $ average Operating Assets is, A: Profit Margin = Income from Operations / Sales 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. 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. Last year the division had total sales of $25,320,000, net operating income of $1,924,320, and average operating assets of $6,000,000. The minimum required rate of return for performance eval, Fanfa Industries is a division of a major corporation. 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. 4. Required: 1. 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. | 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. Boney Corporation processes sugar beets that it purchases from farmers. Inc. During the most recent year, Macon had a net income of $40 million. 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? $ 3,758,960 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%. The company's minimum required rate of return is 12%. Net operating income $1141700 Required: 1. What is, ABC Products is a division of a major corporation. 2. an; an In order to best encourage their individual performance development, what should yo 2. The comp, Gilde Industries is a division of a major corporation. What is the residual income? The divisions projected income statement for the coming year is as follows: Required: 1. The divi, Gilde Industries is a division of a major oorporation. Get access to this video and our entire Q&A library, What Is Residual Income? Compute the contribution margin per unit, and calculate the break-even point in units. a) What is t. Division B had an ROI last year of 15%. Turnover 1.5 Residual income ? Selling expenses = $ 100000 True or False, Under the simplifying assumptions made in the text, to calculate the amount of income tax expense associated with an investment project, first calculate the incremental net cash inflow during each year of the project and then multiply each year's incremental net cash inflow by the tax rate. True or False. 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 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. Supler Corporation produces a part used in the manufacture of one of its products. 20.6% B. Comment on the performance of each of the divisions. Identify the articles that correctly complete the following sentence. Dacker Products is a division of a major corporation. ($15,000) b. The following data are for the latest year of operations. The company estimates that 60% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. $3,866,226, and average operating assets of $7,081,000. Data for each division for last year are as follows (numbers in thousands): The income tax rate for Xenold, Inc., is 40 percent. The company', Aide Industries is a division of a major corporation. a. Sales $38,000,000 Net Operating Income $2,800,000 Average Operating Assets $15,000,000 The company's minimum required rate of return 20% Requi, Chace Products is a division of a major corporation. Forchen, Inc., provided the following information for two of its divisions for last year: Required: 1. Average operating assets b. u do first? This shows, A: Target Rate of return: An order the president gives based on the authority of the Constitution is called _____. The minimum required rate of return for performance evaluati, Beall Industries 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. 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% The company. a)Calculation of return on investments as follows under:-, A: Solution 1A to 1C A: Here in this question, we are required to calculate break even point for Division A. Xenold, Inc., manufactures and sells cooktops and ovens through three divisions: Home, Restaurant, and Specialty. a. (Round to three significant digits.) ABC Products is a division of a major corporation. Return On Investment =NetOperatingIncomeAverageOperatingAssets 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. Calculate EVA for each division and for Xenold, Inc. 4. Based on this information, calculate asset turnover. 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. The company's minimum required rate of return 18%. Dacker Products is a division of a major corporation. an; a You can specify conditions of storing and accessing cookies in your browser. $3,058,960; $4,248,960 $(3,277,840) 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. Calculate ROI and residual income for each division: A: Return on investment is a profitability measure that determines how well an investment performed. Each division is evaluated as a profit center. As a result, Xenold stock has an opportunity cost of 5 percent over the 4 percent long-term government bond rate. The following formula used to calculate Residual income as follows under:- Return on Investment in terms of Margin and, A: WorkingDivisionA Required: 1. An outside supplier has offered to provide the annual requirement of 7,200 of the parts for only $13 each. 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. 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. 25% C. 33% D. 40%. Understand what is residual income. a; a, 10). Requ, Cabal Products is a division of a major corporation. The division, Heavey Fabrication is a division of a major corporation. Investment Turnover = Sales / Invested Assets 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. $2,808,960 b. The following data are for the most recent year of operations: The company's minimum required rate of return. = $245,000 - $58,800 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. Minimumacceptablereturnonassets=Total, A: EVA means net amount by which companys wealth is increased. a. Working capital in the amount of $10,000 would be required. To drive customers to your website, you need to create, Multiple Choice Question . By automating the process, the company would save $133,500 per year in cash operating costs. 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. Residual income = Operating income - (Operating assets * Required Our experts can answer your tough homework and study questions. The following data are for the most recent year of operations: Sales $ 37,080,000 Net operating income $ 3,108,960 Average operating assets $ 8,600,000 The company's minimum required rate of return 16 % The division's residual income is closest to: $1,732,960 ABC Industries is a division of a major corporation. Cabell Products is a division of a major corporation. We all laughed at the joke about_ honest man, even thou 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% The company's minimum required rate of return is 14%. Data concerning the most recent year appears below: Sales $17,810,000 Net operating income $783,640 Average operating assets $4,640,000 The division's return on investment (ROI) is: a. $, 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. 3. Sales Net $50,000,000 Operating Income $3,200,00 Average Operating Assets $10,000,000 The company's minimum required rate of return 15%. Administrative expenses, A: Given that , Last year the division had total sales of $23,510,300, net operating income of $2,562,623, and average operating assets of $7,018,000. The firm uses two departments to manufacture, CVP#1 - Goalie's Ball; Background information for Goalie's Ball, Inc. Goalie's Ball, Inc. manufactures soccer balls. The calculation of margin, turnover, return on investments and residual income is as, A: GIVEN Cost of Goods sold = $ 800000 The company's minimum required rate of return is 12%. It analysis the organization's ability to increase its return on equity. 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. 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. The division's turnover is closest to: Multiple Choice O 10.86 O 3.76 O 0.35 O 2.89 Without preparing a new income statement, determine by how much profits are underestimated. = Operating Income - (Minimum required rate of, A: The costvolumeprofit analysis is conducted according to certain assumptions. Residual Income The Avila Division of Maldonado Company had operating income last year of 136,400 and average operating assets of 1,900,000. 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. The company, Cabell Products is a division of a major corporation. Aide Industries is a division of a major corporation. At the end of 9 years, the machine would have a salvage value of $20,500. Denominator Course Hero is not sponsored or endorsed by any college or university. 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? A high, A: Return on Investment in terms of Margin and Turnover: c. What is the division's return on investment (ROI)? Margin c. Turnover d. Return on investment (ROI) 3. 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. 2.How do we show equilibrium graphically? C Company had the following results last year: Net operating income $1,080 Turnover 2 ROI 9% C Company's average operating assets were _____. Fixed manufacturing overhead 5 Sales, A: "Since you have posted a question with multiple sub-parts, we will solve first three subparts for. Included in the income was interest expense of $2,800,000. =. Cash Vs Debit Card 4. If these calculators are upgraded at a total cost of $100,000, they can be sold for a total of $160,000. , gh it was immature attempt at humor. average Operating Assets is, A: Income statement is one of the financial statement being prepared by business for showing all. CONCEPTUAL CONNECTION Briefly explain the meaning of ROI. 5.6% C. 21.8, The Consumer Products Division of Weiter Corporation had average operating assets of $570,000 and net operating income of $65,100 in March. 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 ? 3. $4,088,960 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. Nakama Corporation is considering investing in a project that would have a 4 year expected useful life. Variable costs = Sales * Variable costs as a % of, A: ROI means return on investment. ROI? The division's, Gilde Industries is a division of a major corporation. The following formula used to calculate as follows:- a; an The following data are for the most recent year of operations: Sales $ 37,080,000 Net operating income $ 3,108,960 Average operating assets $ 8,600,000 The company's minimum required rate of return 16 % The division's residual income is closest to: Compute the ROI and the margin and turnover ratios for each year for the Furniture Division. Lowest Acceptable tranfer price The division, Cabal Products is a division of a major corporation. B) Ensure that team members understand the larger goals of the company Required: 1. The following data are for the latest year of operations: Sales $16,850,000 Net operating income $1,200,960 Average operating assets $4,750,000 The company's minimum required rate of return is 0.12%. C, The following information is available on Company A. 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 . Question: Dacker Products is a division of a major corporation. A: SOLUTION First week only $4.99! $119,300 in May. For the Cleaning Products Division, calculate: a. Residual, A: Note: Some fixed cost are not allocable to the segment that type of cost are called Common fixed, A: Formula for EVA d. Why might the manager of the Specialty Products Division decide to reject the new product line? 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 12.50%. Dacker Products is a division of a major corporation. These assumptions are, A: Sales = $ 1000000 Dacker Products is a division of a major corporation. True or False, The cost of capital is the average rate of return that the company earns on its investments. 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. TARDIS has the capacity to produce 100,000 Sonic Screwdrivers each year. 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. True or False, In target costing, the cost of a product is the starting point and the selling price follows from the cost.