(Note: Round the answer for margin ratio to two decimal places.) Compute the margin and turnover ratios for last year. 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). 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. average Operating Assets is, A: Profit Margin = Income from Operations / Sales A: Here in this question, we are required to calculate break even point for Division A. Dacker Products is a division of a major corporation. Compute the Division's Profit Margin The comp, Aide Industries is a division of a major corporation. A) Set clear expectations for each team member, with SMART goals. Sugar beets are processed in batches. 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. 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. Compute the margin and turnover ratios for last year. The division's residual income is closest to: Explore over 16 million step-by-step answers from our library, s ante, dapibus a molestie consequat, ultrices ac magna. The company's, Cabal Products is a division of a major corporation. Prepare a new income statement to support your answer. 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 Turnover will be The following data are for the most recent year of operations: Sales $ 36,780,000 Net operating income $ 2,958,960 Average operating assets $ 8,300,000 During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of $5,500,000 and average capital assets of $12,000, 000. 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. Compute ROI. 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. 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? The company's minimum required rate of return is 13%. First we need to calculate Net Operating, A: Margin = Operating income/Sales ROI and residual income are tools used to evaluate managerial performance in investment centers. In order to best encourage their individual performance development, what should yo What is the residual income of the new project? At the end of the year, Elway had 23,700,000 in operating assets. The company's minimum required rate of return is 12%. B. an; a True or False. 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. Question: Dacker Products is a division of a major corporation. 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. The company's minimum required rate of return is 12%. 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. Given Return on Investment =20% | 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. b. $3,058,960; $4,248,960 $(3,277,840) The company's minimum required rate of return is 15%. Residual, A: Note: Some fixed cost are not allocable to the segment that type of cost are called Common fixed, A: Formula for EVA 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. Required: 1. 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. $38,380,000 We all laughed at the joke about_ honest man, even thou 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. 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. assets $ 8,600,000 The company's minimum required rate of return 16 Working capital in the amount of $10,000 would be required. = Contribution Margin / Sales = 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. ABC Products is a division of a major corporation. What is implied by space as a form of nonverbal communication? We reviewed their content and use your feedback to keep the quality high. 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. 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. 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. Solved Dacker Products is a division of a major corporation. - Chegg Gabbe Industries is a division of a major corporation. What was Swift Company's minimum required rate of return last year? Residual income = Operating income - (Operating assets * Required rate of return), Become a Study.com member to unlock this answer! What is, ABC Products is a division of a major corporation. 25% C. 33% D. 40%. The following formula used to calculate Residual income as follows under:- Last year, the division had total sales of $21,520,000, net operating income of $538,000, and average operating of $8,000,000. 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. 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. Formula = turnover/ Average operating assets 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. Dacker Products is a division of a major corporation. Inspection Time is generally considered to be value-added time. 2.09. 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's minimum required rate of return is 22%. Margin? The company's minimum required rate of return is 14%. C) Have regularly scheduled performance reviews. Cash Vs Debit Card Selling expenses = $ 100000 -Sales 50,000,000 -Operating Income 3,200,000 -Average Operating Assets 10,000,000 The com, The Casket Division of Saal Corporation had average operating assets of $1,110,000 and a net operating income of $295,200 in January. 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. Turnover = Net sales / average operating assets, A: Break even point means a point where firm is neither earning profit nor incurring any loss. =$1,738,080$6,000,000=28.97%, A: Division return on investment = Net profit / Average total assets Sales For the Small Appliances Division, calculate: a. Return On Investment =NetOperatingIncomeAverageOperatingAssets 4. The minimum acceptable return on assets is 12%. c. Determine the estimated return on investment for the new product line. Assume that direct labor is an avoidable cost in this decision. Compute the ROI and the margin and turnover ratios for each year for the Houseware Division. The residual income approach is the measurement of the net income that an investment, A: a. b. True or False. 25% C. 33% D. 40%. The company's minimum required rate of return is 13%. 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. 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. Variable manufacturing overhead 2 Accounting Chapter 11 Flashcards | Quizlet (Note: Round answer to two decimal places.) 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. True or False, Sunk costs are never relevant in decision making. By automating the process, the company would save $133,500 per year in cash operating costs. 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. Data concerning the most recent year appears below: Dacker Products is a division of a major corporation. 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%. 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. 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. Answered: Dacker Products is a division of a | bartleby 9.90. If the division's average operating assets last year were $450,000, then the division's residual income for last year was: a. 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. a. What is the return on investment for Division A? The company's minimum required rate of return is 12%. 5. Data for each division for last year are as follows (numbers in thousands): The income tax rate for Xenold, Inc., is 40 percent. $15,000 c. ($60,000) d. $60,0, Gaal Industries 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. The minimum required rate of return for performance eval, Fanfa Industries is a division of a major corporation. Rotan Corporation keeps careful track of the time required to fill orders. Eber Wares is a division of a major corporation. Requ, Cabal Products is a division of a major corporation. 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. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided. Determine the profit margin, investment turnover, and return on investment for the Norse Division for 20Y420Y6. You are meeting with your new remote team for the first time. A: Return on investment (ROI) helps to know about what can be earned through external funding. Margin c. Turnover d. Return on investment (ROI) 3. The unit product cost is $21, computed as follows: Cost of Goods sold = $ 800000 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% Xenold, Inc., has been in business for over 15 years and is considered a relatively stable stock, despite its link to the cyclical construction industry. Direct materials $ 6 Dacker Products is a division of a major corporation. 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 division's residual income is closest to: A. See Answer Question: Dacker Products is a division of a major corporation. Average investment = $416500 This, A: Residual income = Operating income - (Average invested assets*Minimum required rate of return), A: Solution: 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 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. 2. CONCEPTUAL CONNECTION Comment on why the ROI for Elway Company is relatively high (as compared to the lower ROI of a typical manufacturing company). [Solved] Dacker Products is a division of a major corporation. The Net operating income $1141700 (Round to four significant digits.) Dacker Products is a division of a major corporation. 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. True or False, In target costing, the cost of a product is the starting point and the selling price follows from the cost. Compute ROI. 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. 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. Agustin Industries is a division of a major corporation Data concerning 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. Residual Income, A: Contribution margin for Business Division's = Sales - Variable expenses No other cash outflows would be required. The division, Cabal Products is a division of a major corporation. Return on Investment = Net income / Average invested asset The following data are for the latest year of operations. B. B) Ensure that team members understand the larger goals of the company Aide Industries is a division of a major corporation. b. The company's minimum required rate of return is 12%. The company's minimum required rate of return 18%. A: 1) AC 351 quizlet chapter 11, 12, 13 Flashcards | Quizlet 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 . The formula for Residual income Administrative expenses, A: Given that , 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. 4.40% b. 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. The company's minimum required rate, Eban Wares is a division of a major corporation. 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. What is, Gilde Industries is a division of a major corporation. 2. How would that affect average operating assets? =, A: Calculation of minimum acceptable return on assets: Compute the operating leverage based on the given income statement. The working capital would be released for use elsewhere at the end of the project. $4,088,960 The company's minimum required rate of return is 12%. The times recorded for a particular order appear below: Sunk costs are costs that have proven to be unproductive. a; an Minimum required rate of return 10% Total assets $800,000 The averag, Handle Fabrication is a division of a major corporation. It refers to the return that an investor would want to make from any capital, A: Operating income of division X = $ 162,200 Denominator The division, Dickonson Products is a division of a major corporation. The present value of the cash inflows would be $88,580. u do first? Answered: Dacker Products is a division of a | bartleby 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 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. 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. Dacker Products is a division of a major corporation. All other trademarks and copyrights are the property of their respective owners. At the end of 9 years, the machine would have a salvage value of $20,500. 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. ABC Industries is a division of a major corporation. b) Net operating income less the minimum required return on average operating assets. Was the ROI for the Avila Division greater than, less than, or equal to 9%? 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? (Ignore income taxes.) Xenold, Inc., has two sources of financing: bonds paying 5 percent interest, which account for 25 percent of total investment, and equity accounting for the remaining 75 percent of total investment. First week only $4.99! 2. Data concerning the most recent year appears below: Sales $17,830,000 Net operating income $838,010 Average operating assets $4,570,000 The divisi, Given the following Data: Division A Division B Division C Sales $6,500,000 $10,500,000 $9,600,000 Average operating assets $1,300,000 $5,250,000 $1,920,000 Net operating income $364,000 $1,008,000 $273,600 Minimum required rate of return 21.00% 19.20% 18, Aide Industries is a division of a major corporation. The following data are for the latest year of operations. The company's required rate of return is 18%. What is the Company's asset turnover? 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. The company's minimum required rate of return is 12%. 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. Last year the division had total sales of $20,160,000, net operating income of $1,592,640, and average operating assets of $8,000,000. 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. 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! Each division is evaluated as a profit center. D. Gaal Industries is a division of a major corporation. The division's residual income is closest to: Cabell Products is a division of a major corporation. Solved Dacker Products is a division of a major corporation - Chegg 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. a; a, 10). The company requires a minimum pretax return of 9% on all investment projects. Calculate the residual income for the Avila Division. 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 ? 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. The company, Baad Industries is a division of a major corporation. (Note: Round all answers to two decimal places.) The following data are for the most recent year of operations: Profit Margin ($15,000) b. 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 return on investment (ROI) is closest to: 35.1% ROI = Earnings * 100/Average operating assets, A: Break even Sales=FixedcostsxSalesSales-VariableCosts, A: solution : given Average operating assets b. a; an ), Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Daniel F Viele, David H Marshall, Wayne W McManus. an; an Turnover = Sales A. Assume a tax rate of 34 percent. a)Calculation of return on investments as follows under:-, A: Solution 1A to 1C 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? Required: 1. 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%. The company's minimum required rate of return is 18%. Calculate Xenolds weighted average cost of capital. TARDIS has the capacity to produce 100,000 Sonic Screwdrivers each year. Required: 1. 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. Sales = $490000 The company's minimum r, 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 rate of return: 10% Brandon's residual income is: a. $ 9,900,000 Get access to this video and our entire Q&A library, What Is Residual Income?