Calculate Xenolds weighted average cost of capital. 23.5% c. 4.9% d. 18.6%, ABC Industries is a division of a major corporation. No other cash outflows would be required. A: DuPont system: 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. It basically signifies the percentage return earned by an entity on, A: The following information Given in the question: Fixed manufacturing overhead 5 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 The Commercial Division of Galena Company has operating income of 12,680,000 and assets of 74,500,000. Profit Margin Identify the articles that correctly complete the following sentence. If sales revenues are 20 percent greater than expected, what is the percentage increase in profits? You are meeting with your new remote team for the first time. 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. A company's current net operating income is $16,800 and its average operating assets are $80,000. Will this improve the divisions financial situation? True or False. Dacker Products is a division of a major corporation. The residual income approach is the measurement of the net income that an investment, A: a. As an alternative, the calculators can be sold in their present condition for $40,000. One division makes neoprene wetsuits. = 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. The division's residual income is closest to: Cabell Products is a division of a major corporation. A: 1) a. c. Determine the estimated return on investment for the new product line. You are meeting with your new remote team for the first time. The compan, Gilde Industries is a division of a major corporation. Gabbe Industries is a division of a major corporation. What is implied by space as a form of nonverbal communication? 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. ): Almendarez Corporation is considering the purchase of a machine that would cost $220,000 and would last for 9 years. The company's minimum required rate of return is 12%. These assumptions are, A: Sales = $ 1000000 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: c. What is the division's return on investment (ROI)? Included in the income was interest expense of $2,800,000. Residual Income, A: Contribution margin for Business Division's = Sales - Variable expenses Compute the margin of safety in dollars based on the given income statement. Turnover=NetoperatingincomeAverageoperatingassets, A: Return on investment is one of the profitability ratio which is being used in business. Last year the division had total sales of $16,260,000, net operating income of. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. 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. Margin c. Turnover d. Return on investment (ROI) 3. If the division's average operating assets last year were $450,000, then the division's residual income for last year was: a. A. The calculation of margin, turnover, return on investments and residual income is as, A: GIVEN 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. The annual depreciation on the new machine would be $88,300. Total sales $11650000 Justify your choice, 1.Explain where the market equilibrium occurs. You can specify conditions of storing and accessing cookies in your browser, Dacker Products is a division of a major corporation. a; a, 10). Last year the division had total sales of $26,110,000, net operating income of $1,801,590, and average operating assets of $7,000,000. The return on investment is, A: ROI means return on investment which means how much returns or net income is getting generated on, A: Note: Some fixed cost are not allocable to the segment that type of cost are called Common fixed, A: RESIDUAL INCOME IS TYPICALLY USED TO ASSESS THE PERFORMANCE OF CAPITAL INVESTMENT , TEAM ,, A: Solution:- ROI = Earnings * 100/Average operating assets, A: Break even Sales=FixedcostsxSalesSales-VariableCosts, A: solution : 17.4% b. Margin = NOI/Sales The following data are for the most recent year of operations: Sales$ 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: 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. 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. Based on your computations, write a brief memo to the president of Gridiron Concepts Inc., Knute Holz, evaluating the divisions performance. 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% an; a The company's minimum required rate of return is 12%. Residual value is a excess, A: Residual income = Income from operations - (Assets * Minimum acceptable return on assets), A: Residual income is the income earned over and above income at minimum required rate of return level., A: Reportable Segment: Reporting financial and descriptive information regarding reportable segments is, A: CALCULATION FOR RESIDUAL INCOME : 3. Calculate any changed ratios (round to four significant digits). Average operating assets Sylveon and Glaceon. ABC Industries is a division of a major corporation. 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. 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. Multiple Choice a; an This, A: Residual income = Operating income - (Average invested assets*Minimum required rate of return), A: Solution: given 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. TARDIS has the capacity to produce 100,000 Sonic Screwdrivers each year. B) Ensure that team members understand the larger goals of the company Average operating assets b. 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. A manager would generally like to see a trend indicating a decrease in setup time. Compute the ROI for the Consumer Products Division for each year. 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. Cash Vs Debit Card True or False. The company has a soccer ball that sells for $30 per ball. = NET OPERATING INCOME - (AVERAGE OPERATING ASSETS X MINIMUM REQUIRED RATE OF, A: Given information 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. Assume a tax rate of 34 percent. Was the ROI for the Avila Division greater than, less than, or equal to 9%? , gh it was immature attempt at humor. b. If operating i, Chece Products is a division of a major corporation. Eevee Company reported a contribution margin of 70,000 for Sylveon, A: Introduction:- 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. The formula for Residual income | 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. 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. Average investment = $416500 Cabell Products is a division of a major corporation. 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. A. 35.6% 5. 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. 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%. A) Set clear expectations for each team member, with SMART goals. (Round to four significant digits.) Solved Dacker Products is a division of a major corporation. - Chegg The minimum acceptable return on assets is 12%. b. C Company had the following results last year: Net operating income $1,080 Turnover 2 ROI 9% C Company's average operating assets were _____. Know how to calculate residual income with examples. Sales $3,500,000 Net operating income $280,000 Average operating assets $1,500,000 Minimum required rate of return 16% A. What is, ABC Products is a division of a major corporation. What is the return on investment for Division A? The company's mi, Cabal Products is a division of a major corporation. Silencer Company Sells A Single Product, Mufflers For Leaf Blowers. The At present, the ball is, Clyde's Comfort, Inc., produces and sells four different sizes of dog beds: Small, Medium, Large, and Extra Large. (Note: Round all answers to two decimal places.) The company. c) Contribution margin plus the minimum required return on 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 Data concerning the most recent year appears below: Sales $17,400,000 Net operating income $870,000 Average operating assets $4,000,000 What is the division's return on investment (ROI)? Answered: Dacker Products is a division of a | bartleby Data concerning the most recent year appears below: Dacker Products is a division of a major corporation. 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. Turnover? What is the ROI? Compute the margin and turnover ratios for last year. 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. The company', Cabal Products is a division of a major corporation. The following formula used to calculate as follows:- 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% $ 3,758,960 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. 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? The following data are for the latest year of operations. 4.44% b. 2.09. A. Compute the contribution margin per unit, and calculate the break-even point in units. Managerial Accounting Chapter 9 - Part 2 Flashcards | Quizlet Sugar beets are processed in batches. 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. 2. The company would need to invest $168,000 in equipment that will have zero salvage value at the end of the project. Agustin Industries is a division of a major corporation Data concerning Compute ROI. 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. 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. $119,300 in May. 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%). a. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. 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). 5. Maldonados minimum acceptable rate of return is 9%. $1,040,640, and average operating assets of $3,902,400. 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. CONCEPTUAL CONNECTION Briefly explain the meaning of ROI. To drive customers to your website, you need to create, Multiple Choice Question Numerator Dacker Products is a division of a major corporation. The following an; an 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? a) What is t, Ash Wares is a division of a major corporation. The minimum required rate of return for performance evaluation purposes is 9%. Average operating assets b. The comp, Gilde Industries is a division of a major corporation. Dacker Products is a division of a major corporation. The divisions have the following revenues and expenses for June 2022: Cassette Vinyl CD Revenues $82,000, The TARDIS Corporation produces and sells a single product--Sonic Screwdrivers. A Dacker Products is a division of a major corporation. Variable manufacturing overhead 2 This site is using cookies under cookie policy . The company's minimum required rate, Eban Wares is a division of a major corporation. What is the sales margin? 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 company's minimum required rate of return is 13%. Sales $38,000,000 Net Operating Income $2,800,000 Average Operating Assets $15,000,000 The com, Gaal Industries is a division of a major corporation. d. Why might the manager of the Specialty Products Division decide to reject the new product line? Harry Parsons' annual salary is $112,600. 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. 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. a. What is the sales margin? An outside supplier has offered to provide the annual requirement of 7,200 of the parts for only $13 each. C) Have regularly scheduled performance reviews. This shows, A: Target Rate of return: Assume that direct labor is an avoidable cost in this decision. Dacker Products is a division of a major corporation. Assume that Tolar decides to upgrade the calculators. Return on Investment, Margin, Turnover Data follow for the Consumer Products Division of Kisler Inc.: (Note: Round all answers to two decimal places.) 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 $23,878,800, net operating income of $3,056,486, and average operating assets of $8,844,000. Last year the division had total sales of $10,600,000, net operating income of $1,070,600, and average operating assets of $4,000,000. (Note: Round the answer for margin ratio to two decimal places.) The comp, Aide Industries is a division of a major corporation. Administrative expenses, A: Given that , Dacker Products is a division of a major corporation. Annual incremental sales would be $520,000 and annual cash operating expenses would be $300,000. 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. Last year the division had total sales of $27,615,900, net operating income of. True or False, If investment funds are limited, the net present value of one project should not be compared directly to the net present value of another project unless the initial investments in these projects are equal. The division turnover is closest to: A. Dacker Products is a division of a major corporation. Last year the division had total sales of $8,790,000, a net operating income of $428,400, and average operating assets of $3,000,000. a. 90 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. The divisional manager has decided to increase the advertising budget by 140,000 and cut the average selling price to 200. 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% Residual Income The Avila Division of Maldonado Company had operating income last year of 136,400 and average operating assets of 1,900,000. 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. Compute the ROI and the margin and turnover ratios for each year for the Houseware Division. True or False, In target costing, the cost of a product is the starting point and the selling price follows from the cost. 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. All other trademarks and copyrights are the property of their respective owners. 25% C. 33% D. 40%. Required: Compute the (1) operating income, (2) margin and turnover ratios, and (3) ROI. 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 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. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided. A: Here in this question, we are required to calculate break even point for Division 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. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. 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? The division, Heavey Fabrication is a division of a major corporation. (Round to four significant digits.) Determine the Specialty Products Division managers bonus for the past year. Denominator (Round percentage your answer to 2 decimal places. 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. (Note: Round answer to two decimal places.) a) What is t. Division B had an ROI last year of 15%. Residual income = Operating income - (Operating assets * Required rate of return), Become a Study.com member to unlock this answer! Course Hero is not sponsored or endorsed by any college or university. $900,000 C. $660,000 D. $540,000. The divisions projected income statement for the coming year is as follows: Required: 1. = $245,000 - $58,800 a) $0, Dickonson Products is a division of a major corporation. If TARDIS produces at capacity, the per unit. = 5.77%, A: Cost accounting is the branch of accounting that inspects the cost structure of a business. 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: Which of the following do you prefer for business/ economic transactions. 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. The company's minimum required rate of return is 15%. = $136,950 / $415,000 20% B. The following data are for the most recent year of operations: The company's minimum required rate of return14%. Selling expenses = $ 100000 Dacker Products is a division of a - Elite Writing Geeks - Facebook Break even, A: Contribution Margin Ratio for the Division Q Dacker Products is a division of a major corporation. 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 $21,300,000, net operating income of $575,100, and average operating assets of $5,000,000. 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.