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 average operating assets. 2.09. The following data are for the most recent year of operations: The company's minimum required rate of return 15%. (Note: Round answer to two decimal places.) = ), Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Daniel F Viele, David H Marshall, Wayne W McManus. 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. Residual income is the income earned, A: Residual income = Operating income - Minimum required return Sugar beets are processed in batches. Return on Investment in terms of Margin and, A: WorkingDivisionA Cash Vs Debit Card Rotan Corporation keeps careful track of the time required to fill orders. 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. Dacker Products is a division of a major corporation. The company uses straight-line depreciation on all equipment. Dacker Products is a division of a major corporation. Net Profit = sales - cost of goods, A: Residual income means the income that one might continue to receive even after completion of the, A: Note:- Since you have posted a question with multiple sub-parts, we will solve the first three, A: Working Note: 2. All rights reserved. 5% c. 8.89% d. 11.25%, Esh Wares 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 $17,570,000 Net operating income $860,930 Average operating assets $4,950,000 The division's margin is: a. 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. an; an 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. Eevee Company reported a contribution margin of 70,000 for Sylveon, A: Introduction:- Assume a tax rate of 34 percent. The following data are for the latest year of operations. A profit center is responsible for generating revenue, but it is not responsible for controlling costs. The present value of the cash inflows would be $88,580. $8,600 c. $60,200 d. $17,200. Lowest Acceptable tranfer price True or False, A shorter payback period does not necessarily mean that one investment is more desirable than another. The division's, Cabal Products is a division of a major corporation. Small AppliancesDivision The company's minimum required rate of return is 12%. 3. 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. Sales $3,500,000 Net operating income $280,000 Average operating assets $1,500,000 Minimum required rate of return 16% A. What was the Consumer Products Division's residual income in May? For, A: Break even Sales=FixedcostsxSalesSales-VariableCosts, A: Rate of return on investment = Net Income / Investment in assets. $9, Ceder Products is a division of a major corporation. Dacker Products is a division of a major corporation. Total assets were $470 million, current liabilities were $104,000,000, and $72,000,000 of the current liabilities are noninterest bearing. The company requires a minimum pretax return of 9% on all investment projects. Jarriot, Inc., presented two years of data for its Furniture Division and its Houseware Division. (Round percentage your answer to 2 decimal places. Calculate Xenolds weighted average cost of capital. The times recorded for a particular order appear below: Cabell Products is a division of a major corporation. . (Round your answers to four significant digits.) This site is using cookies under cookie policy . It is a profitability ratio calculated by the firm dividing operating income, A: Contribution margin = Total sales - Variable costs The divisions projected income statement for the coming year is as follows: Required: 1. True or False, A complete income statement need not be prepared as part of a differential cost analysis. You have been asked to analyze the possible reasons the Specialty Products Division manager rejected the new product line. 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. C. 2.65. 3. = 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. $, 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. 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. $25,800 b. 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. True or False, Fixed costs may be relevant in a decision. 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? Denominator The company's minimum required rate of return is 12%. You can specify conditions of storing and accessing cookies in your browser, Dacker Products is a division of a major corporation. At the end of the year, Elway had 23,700,000 in operating assets. The division, Cabal Products is a division of a major corporation. $ 9,900,000 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 $18,690,000, net operating income of $934,500, and average operating assets of $5,233,200. Compute the Division's Profit Margin Dacker Products 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. Division A has operating income of $900,000 before service department charges and makes 60,000 payments to vendors. Cost of Goods sold = $ 800000 A company's current net operating income is $16,800 and its average operating assets are $80,000. The divisional manager has decided to increase the advertising budget by 140,000 and cut the average selling price to 200. (Round to four significant digits.) The division, Dickonson Products 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. (Round your answer up to the next whole unit.) a. Aide Industries is a division of a major corporation. A: 1) Profit margin, investment turnover, and return on investment The condensed income statement for the International Division of Valgenti Inc. is as follows (assuming no service department charges) The manager of the International Division is considering ways to increase the return on investment. The company's minimum required rate of return is 12%. Compute the margin and turnover ratios for last year. The divi, Gilde Industries is a division of a major oorporation. The company's minimum required rate of return is 12%. Dacker Products is a division of a major corporation Accounting Free Solutions 93 subscribers Subscribe 0 Share No views 1 minute ago Show more Show more Vintage Spring Paintings Art For Your TV. The company's minimum required rate of return is 13%. You can specify conditions of storing and accessing cookies in your browser. The compan, Cabal Products is a division of a major corporation. The company's minimum required rate of return 18%. Compute: - The divis, Cabell Products is a division of a major corporation. ABC Products is a division of a major corporation. 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. =$1,738,080$6,000,000=28.97%, A: Division return on investment = Net profit / Average total assets Requ, Cabal Products is a division of a major corporation. 1. 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. Return On Investment =NetOperatingIncomeAverageOperatingAssets Each division manager is evaluated on the basis of divisional return on investment. An outside supplier has offered to provide the annual requirement of 7,200 of the parts for only $13 each. 4.40% b. Average operating assets Data for each division for last year are as follows (numbers in thousands): The income tax rate for Xenold, Inc., is 40 percent. Required: 1. Compute the ROI for the Consumer Products Division for each year. True or False, The cost of capital is the average rate of return that the company earns on its investments. 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% What is the residual income? Silencer Company Sells A Single Product, Mufflers For Leaf Blowers. The This shows, A: Target Rate of return: The company, Baad Industries is a division of a major corporation. The following data are for the latest year of operations: Sales $30,000,000 Net operating income $1,170,000 Average operating assets $8,000,000 The company's minimum required rate of return 18% Required: Deano Products is a division of a major corporation. 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 latest year of operations. [Solved] Dacker Products is a division of a major corporation. The Dacker Products is a division of a major corporation. 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 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. 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. Know how to calculate residual income with examples. Using the sales margin from the previous exercise, what is the total ROI for the company during the current year? Last year the division had total sales of $13,420,000, net operating income of $1,261,480, and average operating assets of $2,684,000. Variable manufacturing overhead 2 Compute the margin and turnover ratios for last year. You are meeting with your new remote team for the first time. Prepare a segmented income statement for Xenold, Inc., for last year. Data for the segment and for the company for March appear below: In addition, common fixed expenses totaled $210,000 and, Hardigree Corporation makes a product that has the following direct labor standards: Standard direct labor-hours0.3hours per unitStandard direct labor rate$23.00per hour In May the company's budgeted, Casivant Corporation makes a product that uses a material with the following direct material standards: Standard quantity3.8pounds per unitStandard price$4.00per pound The company produced, Majer Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard Price or RateStandard Cost Per UnitDirect materials6.4ounces$3.00per ounce$19.20Direct, Waterfall, Ltd. manufactures custom basketball jerseys for professional basketball teams. Xenold, Inc., manufactures and sells cooktops and ovens through three divisions: Home, Restaurant, and Specialty. 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. 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. Was the ROI for the Avila Division greater than, less than, or equal to 9%? At what selling price per unit would the company be as well off as if it just sold the calculators in their present condition? Below is selected prior year data from the Company. -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. What are the invested capital and ROI for Macon? Dacker Products is a division of a major corporation. 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. 23.5% c. 4.9% d. 18.6%, ABC Industries 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 turnover used to compute ROI is closest to: Explanation Turnover = Sales . Turnover = Net sales / average operating assets, A: Break even point means a point where firm is neither earning profit nor incurring any loss. 19.23 B. Last year the division had total sales of $20, 440,000, net operating income of $1, 860, 040, and average operating assets of $7,000,000. Total sales $11650000 Dacker Products is a division of a major corporation - YouTube Sales = $490000 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. 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% As a result, Xenold stock has an opportunity cost of 5 percent over the 4 percent long-term government bond rate. The company estimates that 60% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. What is the return on investment for Division 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. 2. 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 working capital would be released for use elsewhere at the end of the project. Eber Wares 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. = Operating Income - (Minimum required rate of, A: The costvolumeprofit analysis is conducted according to certain assumptions. 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. The division's, Chace Products is a division of a major corporation. Turnover? Katayama Company produces a variety of products. The company has a soccer ball that sells for $30 per ball. In order to best encourage their individual performance development, what should yo 90 Dacker Products is a division of a major corporation. Data concerning the most recent year appears below: Sales $17,610,000; Net operating income $1,021,380; Average operating assets $4,780,000. It analysis the organization's ability to increase its return on equity. Return on Investment, Margin, Turnover Data follow for the Consumer Products Division of Kisler Inc.: (Note: Round all answers to two decimal places.) Calculate EVA for each division and for Xenold, Inc. 4. In order to best encourage their individual performance development, what should yo Question: Dacker Products is a division of a major corporation. Compute ROI. The division turnover is closest to: A. (Note: Round the answer for margin ratio to two decimal places.) 5. The following data are for the most, The company's minimum required rate of return. Last year the division had total sales of $16,260,000, net operating income of. True or False, In target costing, the cost of a product is the starting point and the selling price follows from the cost. Justify your choice, 1.Explain where the market equilibrium occurs. 37,080,000 Net operating income $ 3,108,960 Average operating Annual information regarding the four types of dog beds is shown below: Small, The Gathering Sound, Ltd. has three divisions for selling music: Cassette, Vinyl, and CD. Dacker Products is a division of a major corporation. The following The company's minimum required rate of return is 12%. 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. Determine the return on investment for the Specialty Products Division for the past year. A manager would generally like to see a trend indicating a decrease in setup time. Required: 1. 1. 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. , gh it was immature attempt at humor. 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. ($15,000) b. 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. 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. Identify the articles that correctly complete the following sentence. The following data are for the most recent year of operations: Vandenheuvel Corporation keeps careful track of the time required to fill orders. 4.44% b. 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. Turnover = Sales 4. 4. The company, Cabell Products is a division of a major corporation. The company's minimum required rate of return is 15%. Required: 1. 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. 20% B. The division', Cabal Products is a division of a major corporation. At the end of 9 years, the machine would have a salvage value of $20,500. Margin? Dacker Products is a division of a major corporation. ABC Industries is a division of a major corporation. 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 16%. The comp, Gilde Industries is a division of a major corporation. 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 income tax expense in year 2: The management of Leitheiser Corporation is considering a project that would require an initial investment of $57,000. Last year the division had total sales of $23,100,000, income of and average operating assets of $5,500,000. Compute the margin and turnover ratios for each year. 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. 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. Operating income = $ 83300, A: RESIDUAL INCOME : Profit Margin 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 company's minimum required rate of return is 14%. True or False. True or False, Sunk costs are never relevant in decision making. 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. acc 17.docx - Dacker Products is a division of a major corporation. The 2. It basically signifies the percentage return earned by an entity on, A: The following information Given in the question: It, A: ROI (Return on Investment) is used to measure the efficiency of the business investment by, A: Margin = Earnings * 100/Sales What is the sales margin? Dacker Products is a division of a major corporation. The following ), Schlarbaum Corporation's management keeps track of the time it takes to process orders. Check out a sample Q&A here See Solution star_border 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. 25% C. 33% D. 40%. Data concerning the most recent year appears below: Sales $17,860,000 Net operating income $1,125,180 Average operating assets $4,970,000 The divi, Iba Industries is a division of a major corporation. If the division's average operating assets last year were $450,000, then the division's residual income for last year was: a. 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. What is the Company's asset turnover? ANSWER= [1] OPTION-(D) IS THE CORRECT ANSWER.8.9%. 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 ? Sales The compan, Gilde Industries is a division of a major corporation. The division's minimum required rate of return is 10%. (Note: Round all answers to two decimal places.) The unit product cost is $21, computed as follows: Each division is evaluated as a profit center. b) Net operating income less the minimum required return on average operating assets.