The following data are for the most, The company's minimum required rate of return. Forchen, Inc., provided the following information for two of its divisions for last year: Required: 1. 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. 25% C. 33% D. 40%. As a result, Xenold stock has an opportunity cost of 5 percent over the 4 percent long-term government bond rate. Sales = $490000 Dacker Products is a division of a major corporation. 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% (Round percentage your answer to 2 decimal places. The following data are for the latest year of operations: Sales $10,000,000 Net operating income $950,000 Average operating assets $4,000,000 The compa, I) 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; and required rate of return, 12%. The division's residual income is closest to: A: Residual Income Dacker Products is a division of a major corporation. Margin c. Turnover d. Return on investment (ROI) 3. In year 3 the company would have to incur one-time renovation expenses of $96,000. 2. True or False, Under the simplifying assumptions made in the text, to calculate the amount of income tax expense associated with an investment project, first calculate the incremental net cash inflow during each year of the project and then multiply each year's incremental net cash inflow by the tax rate. The following data are for the most recent year of operations: Sales$ 37,880,000Net operating income$ 3,508,960Average operating assets$ 9,400,000The company's minimum required rate of return14%. The division's turnover is closest to: Multiple Choice O 10.86 O 3.76 O 0.35 O 2.89 A) Set clear expectations for each team member, with SMART goals. 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. 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. Dacker Products is a division of a major corporation. The residual income is the residue of net income after deducting an amount equivalent of cost of using the assets of the company funded by finance providers. 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. Start your trial now! 37,080,000 Net operating income $ 3,108,960 Average operating ABC Industries is a division of a major corporation. Dacker Products is a division of a major corporation. Rate of, A: Here in this question, we are required to calculate the residual value. The following data are for the latest year of operations. The following data are for the latest year of operations: Sales $14,720,000 Net operating income $1,000,960 Average operating asset $4,000,000 The c, Beak Industries is a division of a major corporation. Each division is evaluated as a profit center. What was Swift Company's minimum required rate of return last year? The company's minimum required rate of return is 12%. 3. Working capital in the amount of $10,000 would be required. The divi, Gilde Industries is a division of a major oorporation. A) ($3,000), Eacher Wares is a division of a major corporation. = Contribution Margin / Sales b. Calculate EVA for each division and for Xenold, Inc. 4. Get access to this video and our entire Q&A library, What Is Residual Income? Maldonados minimum acceptable rate of return is 9%. 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. Turnover = Sales Compute the ROI and the margin and turnover ratios for each year for the Furniture Division. 5. The following data are for the most recent year of operations: Vandenheuvel Corporation keeps careful track of the time required to fill orders. True or False. -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. e. Suggest an alternative performance measure for motivating division managers to accept new investment opportunities that would increase the overall company income and return on investment. 20% B. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Based on this information, calculate asset turnover. The company, Cabal Products is a division of a major corporation. The company's minimum required rate of return is 12%. It analysis the organization's ability to increase its return on equity. a. The company's minimum required rate of return is 18%. 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. Last year, the division had total sales of $21,520,000, net operating income of $538,000, and average operating of $8,000,000. Dacker Products is a division of a major corporation. 17.4% b. 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. A: 1) = 5.77%, A: Cost accounting is the branch of accounting that inspects the cost structure of a business. Variable costs = Sales * Variable costs as a % of, A: ROI means return on investment. During the most recent month, the. The company's mi, Cabal Products is a division of a major corporation. a)Calculation of return on investments as follows under:-, A: Solution 1A to 1C The company's minimum required rate of return is 12.50%. An order the president gives based on the authority of the Constitution is called _____. Net operating income 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. , gh it was immature attempt at humor. 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. 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%. 2. given 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. Dacker Products is a division of a major corporation. 19.23 B. True or False, Fixed costs may be relevant in a decision. 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. 1. average Operating Assets is, A: Income statement is one of the financial statement being prepared by business for showing all. A. What is the sales margin? Residual income = Operating income - (Operating assets * Required Our experts can answer your tough homework and study questions. 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 compan, Gilde Industries is a division of a major corporation. B) Ensure that team members understand the larger goals of the company The division', Cabal Products is a division of a major corporation. 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 calculation of margin, turnover, return on investments and residual income is as, A: GIVEN $1,040,640, and average operating assets of $3,902,400. (Note: Round all answers to two decimal places.) What is, Daab Products is a division of a major corporation. 4.Explain why the market was out of equilibrium (what caused it to be out of equilibrium) and what needed to be done to bring the market back to equilibrium. Without preparing a new income statement, determine by how much profits are underestimated. The following data are for the most recent year of operations: The company's minimum required rate of return14%. Check out a sample Q&A here See Solution star_border The The company requires a minimum pretax return of 9% on all investment projects. What is, ABC Products is a division of a major corporation. The following data are for the most recent year of operations: The division's margin used to compute ROI is closest to: Multiple Choice 34.4% 37.5% 25.0% 9.4% Expert Solution Want to see the full answer? In order to best encourage their individual performance development, what should yo The company's minimum required rate of return $, 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. Residual income The Commercial Division of Galena Company has operating income of 12,680,000 and assets of 74,500,000. 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 : The company's minimum required rate of return is 22%. 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. For, A: Break even Sales=FixedcostsxSalesSales-VariableCosts, A: Rate of return on investment = Net Income / Investment in assets. Identify the articles that correctly complete the following sentence. 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. Course Hero is not sponsored or endorsed by any college or university. The annual depreciation on the new machine would be $88,300. =, A: Calculation of minimum acceptable return on assets: 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. , gh it was immature attempt at humor. (Round your percentage answer to 2 decimal places.). d. Why might the manager of the Specialty Products Division decide to reject the new product line? Dacker Products is a division of a major corporation. c. Determine the estimated return on investment for the new product line. (Note: Round the answer for margin ratio to two decimal places.) 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:- 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. What is the residual income? The residual income approach is the measurement of the net income that an investment, A: a. Dacker Products is a division of a major corporation. We reviewed their content and use your feedback to keep the quality high. The following data are for the latest year of operations. Net operating income $1141700 A high, A: Return on Investment in terms of Margin and Turnover: 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 company's minimum required rate of return is 13%. Last year, the division had total sales of $25,540,000, net operating income of $1,277,000, and average operating assets of $7,151,200. Each division manager is evaluated on the basis of divisional return on investment. 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. = 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 times recorded for a particular order appear below: Cabell Products is a division of a major corporation. 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. 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: 4.44% b. Minimum required rate of return 10% Total assets $800,000 The averag, Handle Fabrication is a division of a major corporation. what is the minimum acceptable operating income. TARDIS has the capacity to produce 100,000 Sonic Screwdrivers each year. The division, Cabal Products is a division of a major corporation. The company's minimum required rate of return is 14%. Dacker Products is a division of a major corporation. Sales $3,500,000 Net operating income $280,000 Average operating assets $1,500,000 Minimum required rate of return 16% A. Variable manufacturing overhead 2 You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Dacker Products is a division of a major corporation. 3. 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%. ANSWER= [1] OPTION-(D) IS THE CORRECT ANSWER.8.9%. = NET OPERATING INCOME - (AVERAGE OPERATING ASSETS X MINIMUM REQUIRED RATE OF, A: Given information First we need to calculate Net Operating, A: Margin = Operating income/Sales $2,808,960 b. B) Ensure that team members understand the larger goals of the company What is the div, Cabal Products is a division of a major corporation. The unit product cost is $21, computed as follows: The simple rate of return on the investment is closest to (Ignore income taxes. 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. Compute the margin and turnover ratios for last year. The company's minimum required rate of return is 13%. Require, Cabal Products is a division of a Major Corporation. 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. Small AppliancesDivision 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. Turnover will be 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. This, A: Residual income = Operating income - (Average invested assets*Minimum required rate of return), A: Solution: What is the ROI? Residual income = Operating income - (Operating assets * Required rate of return), Become a Study.com member to unlock this answer! C) Have regularly scheduled performance reviews. ROI = Earnings * 100/Average operating assets, A: Break even Sales=FixedcostsxSalesSales-VariableCosts, A: solution : B. The company's m, Cabal Products is a division of a major corporation. The following data are for the latest year of operations: Sales $16,850,000 Net operating income $1,200,960 Average operating assets $4,750,000 The company's minimum required rate of return is 0.12%. 2.09. 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, Which of the following do you prefer for business/ economic transactions.