Turnover=NetoperatingincomeAverageoperatingassets, A: Return on investment is one of the profitability ratio which is being used in business. During the current year. AC 351 quizlet chapter 11, 12, 13 Flashcards | Quizlet Dacker Products is a division of a major corporation. 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. $38,380,000 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. RESIDUAL INCOME FOR DIVISION = NET INCOME - AVERAGE INVESTED CAPITAL * COST OF CAPITAL . (Round your answers to four significant digits.) Annual incremental sales would be $520,000 and annual cash operating expenses would be $300,000. 4.44% b. Net operating income A company's current net operating income is $16,800 and its average operating assets are $80,000. Sales Katayama Company produces a variety of products. 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. The residual income approach is the measurement of the net income that an investment, A: a. What is, Daab Products is a division of a major corporation. $, 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. Understand what is residual income. By reducing labor and other operating costs, the machine would provide annual cost savings of $35,000. Minimumacceptablereturnonassets=Total, A: EVA means net amount by which companys wealth is increased. u do first? The division turnover is closest to: A. Calculate Xenolds weighted average cost of capital. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. Data for each division for last year are as follows (numbers in thousands): The income tax rate for Xenold, Inc., is 40 percent. If the division's average operating assets last year were $450,000, then the division's residual income for last year was: a. By automating the process, the company would save $133,500 per year in cash operating costs. The company estimates that 60% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. The company's minimum required rate of return is 16%. The company's minimum required rate of return is 12%. The division's r, Iba 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. Dacker Products is a division of a major corporation. average Operating Assets is, A: Profit Margin = Income from Operations / Sales | 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? The company's minimum required rate of return Average Operating, A: Residual income is the excess net income over the minimum required rate of return Spicemas Launch 28th April, 2023 - Facebook a. 5. / following data are for the most recent year of operations: Sales $ (Round to four significant digits.) 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. A: Please find the answers to the above questions below: A: Profit margin ratio: Residual Income The Avila Division of Maldonado Company had operating income last year of 136,400 and average operating assets of 1,900,000. True or False, The cost of capital is the average rate of return that the company earns on its investments. The unit product cost is $21, computed as follows: u do first? assets $ 8,600,000 The company's minimum required rate of return 16 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. a. A: 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 margin used to compute ROI is closest to: A) 21.9% B) 29.6% C) 7.7% D) 35.1% 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. Was the ROI for the Avila Division greater than, less than, or equal to 9%? where, Comment on the performance of each of the divisions. $ 3,758,960 Harry Parsons' annual salary is $112,600. EVA = NOPAT - WACC x Capital Invested. Question: Dacker Products is a division of a major corporation. A. It basically signifies the percentage return earned by an entity on, A: The following information Given in the question: copyright 2003-2023 Homework.Study.com. Return on Investment, Margin, Turnover Data follow for the Consumer Products Division of Kisler Inc.: (Note: Round all answers to two decimal places.) 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. 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. If TARDIS produces at capacity, the per unit. Createyouraccount, The division's residual income is $1,748,960 (d). 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. The division's minimum required rate of return is 10%. Cleaning ProductsDivision 37,080,000 Net operating income $ 3,108,960 Average operating What is Harry's marital status, and how many dependents does he claim? To drive customers to your website, you need to create, Multiple Choice Question B) Ensure that team members understand the larger goals of the company Required: 1. Net operating income $1141700 Check out a sample Q&A here See Solution star_border Required: 1. 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 new machine would replace some old equipment that would be sold for scrap now, yielding $21,300. a. = Contribution Margin / Sales ANSWER= [1] OPTION-(D) IS THE CORRECT ANSWER.8.9%. We all laughed at the joke about_ honest man, even thou If the Accounts Payable Department is treated as a service department, what is Division As operating income? 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%). 2. 5% c. 8.89% d. 11.25%, Esh Wares is a division of a major corporation. 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. Income, A: Investment center profit margin = Income / Sales *100, A: The turnover is calculated as : 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. Dacker Products is a division of a major corporation. A: ROI stands for return on investment that shows the return earned by the company on the investment. 4.40% b. When a company is cash poor, a project with a short payback period but a low rate of return may be preferred to a project with a long payback period and a high rate of return. (Note: Round the answer for margin ratio to two decimal places.) (2) Margin c. Turnover d. Return on investment (ROI) 3. 2. 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. Required: 1. = 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 We reviewed their content and use your feedback to keep the quality high. Direct labor 8 Included in the income was interest expense of $2,800,000. The following data are for the most recent year of operations: Sales$ 37,880,000Net operating income$ 3,508,960Average operating assets$ 9,400,000The company's minimum required rate of return14%. 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. Investment Turnover = Sales / Invested Assets What if operating income for the Small Appliances Division was 2,000,000? Solved Dacker Products is a division of a major corporation - Chegg a; an What is the div, Cabal Products 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. $3,058,960; $4,248,960 $(3,277,840) 1. 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. ABC Products is a division of a major corporation. (Round your answers to four significant digits.) Cabell Products is a division of a major corporation. Comment on the performance of each of the divisions. It is calculated by, A: Given information 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. It refers to the return that an investor would want to make from any capital, A: Operating income of division X = $ 162,200 The comp, Gilde Industries is a division of a major corporation. Solved Dacker Products is a division of a major corporation. - Chegg Dacker Products is a division of a major corporation. 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. What is the return on investment for Division A? 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: 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. Calculate ROI and residual income for each division: A: Return on investment is a profitability measure that determines how well an investment performed. Required: 1. 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. The following data are for the latest year of operations. The minimum required rate of return for performance eval, Fanfa Industries is a division of a major corporation. ): Crowl Corporation is investigating automating a process by purchasing a machine for $794,700 that would have a 9 year useful life and no salvage value. (Selling price to Outside customers, A: Return on Investment is used to evaluate the profitability of an asset or an investment and the. A. B) Ensure that team members understand the larger goals of the company 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. B. 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. ), Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Daniel F Viele, David H Marshall, Wayne W McManus. A) Set clear expectations for each team member, with SMART goals. Prepare a segmented income statement for Xenold, Inc., for last year. $119,300 in May. Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested assets of 180,000, and sales of 720,000. What is the Company's asset turnover? 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. . 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. True or False, A complete income statement need not be prepared as part of a differential cost analysis. The comp, Aide Industries is a division of a major corporation. 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. The times recorded for a particular order appear below: Cabell Products is a division of a major corporation. Dacker Products is a division of a major corporation. 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 ? Dacker Products is a division of a major corporation. ): Almendarez Corporation is considering the purchase of a machine that would cost $220,000 and would last for 9 years. 25% C. 33% D. 40%. 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. 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. $67,500 b. The company would need to invest $168,000 in equipment that will have zero salvage value at the end of the project. 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. 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. $22,500 c. $37,500 d. $, Coolbrook Company has the following information available for the past year: River Division Stream Division Sales revenue $1,202,000 $1,810,000 Cost of goods sold and operating expenses $898,000 $1,281,000 Net operating income $304,000 $529,000 Average in, Coolbrook Company has the following information available for the past year: River Division Stream Division Sales revenue $1,210,000 $1,805,000 Cost of goods sold and operating expenses 896,000 1,284,000 Net operating income $314,000 $521,000 Average inv, ABC Company is a division of XYZ Company. 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 . 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 $26,110,000, net operating income of $1,801,590, and average operating assets of $7,000,000. Sugar beets are processed in batches. 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. Minimum required rate of return 10% Total assets $800,000 The averag, Handle Fabrication is a division of a major corporation. The division's residual income is closest to: A: Residual Income Average operating assets b. The company', Cabal Products is a division of a major corporation. 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 company's minimum required rate of return is 13%. The compan, Cabal Products is a division of a major corporation. It is a profitability ratio calculated by the firm dividing operating income, A: Contribution margin = Total sales - Variable costs First we need to calculate Net Operating, A: Margin = Operating income/Sales The simple rate of return on the investment is closest to (Ignore income taxes. 25% C. 33% D. 40%. 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. d. Why might the manager of the Specialty Products Division decide to reject the new product line? = 5.77%, A: Cost accounting is the branch of accounting that inspects the cost structure of a business. 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. 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. 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% b. 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% 38.0% 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. During the most recent month, the. Solved Dacker Products is a division of a major corporation - Chegg The division's residual income is closest to: Cabell Products is a division of a major corporation. Profit Margin Know how to calculate residual income with examples. [Solved] Dacker Products is a division of a major corporation. The =$1,738,080$6,000,000=28.97%, A: Fixed cost is the cost that has been fixed at all levels of output. 35.6% The following data are for the most, The company's minimum required rate of return. 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%. Dacker Products is a division of a major corporation. 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. Small AppliancesDivision $2,808,960 b. TARDIS has the capacity to produce 100,000 Sonic Screwdrivers each year. =, A: (1) 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. You can specify conditions of storing and accessing cookies in your browser, Dacker Products is a division of a major corporation. Margin c. Turnover d. Return on investment (ROI) 2. 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. 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. The division's margin used to compute ROI is closest to: 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. Below is selected prior year data from the Company. . 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. c. Determine the estimated return on investment for the new product line. The division's, Gilde Industries is a division of a major corporation. Working capital in the amount of $10,000 would be required. $1,040,640, and average operating assets of $3,902,400. Compute the contribution margin per unit, and calculate the break-even point in units. a. 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. ), Schlarbaum Corporation's management keeps track of the time it takes to process orders. The division, Dickonson Products is a division of a major corporation. 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. Jarriot, Inc., presented two years of data for its Furniture Division and its Houseware Division. 2. 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 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. 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. Xenold, Inc., manufactures and sells cooktops and ovens through three divisions: Home, Restaurant, and Specialty. 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. 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. CONCEPTUAL CONNECTION Briefly explain the meaning of ROI. was not in equilibrium for a product or service. The firm uses two departments to manufacture these jerseys: the Cutting Department and the Sewing. Silencer Company Sells A Single Product, Mufflers For Leaf Blowers. The 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. Prepare a segmented income statement for Xenold, Inc., for last year. The division, Cabal Products is a division of a major corporation. Last year, the division had total sales of $21,520,000, net operating income of $538,000, and average operating of $8,000,000.