Data about Les department of Les miserable’s company for the year are as follows: A. sales amounted to 880,000 at 12% margin B. return on investment was 20% C. minimum required rate of return was 15% The residual income of les department must be: A. 26,400 B. 42,240 C. 79,200 D.105,600
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A. sales amounted to 880,000 at 12% margin
The residual income of les department must be:
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- Shalom Company provided you the following data: Average operating assets 120,000 Margin on sales Minimum required rate of return Return on investment Sales Turnover What is the residual income? 15% 20% 25% 300,000 2.50Selected data from Division A of Green Company are as follows: Sales $ 630,000 Average investment $ 491,400 Operating income $ 81,900 Minimum rate of return 15% If the minimum rate of return was 11% (instead of the percentage shown above), Division A's residual income (RI) would be:The Magazine Division of XYZ publication Company had the following financial data for the year: Assets available for use P 1,000,000 BV P1,500,000 MV Residual income P 100,000 Return on investment 15% A. What was the Magazine Division’s segment income? B. If the manager of the Magazine Division is evaluated based on return on investment, how much would she willing to pay for an investment that promise to increase net segment income by P50,000?
- The following selected data pertain to the belt division of Allen Corp. for last year: Sales = $500,000 Average operating Assets = $200,000 Operating Income = $80,000 Turnover = 2.5 Min. Required Return = 20% What was the return on investment?Alexander Inc. makes basketballs. The results for the year were as follows: Basketballs Sales $450,000 Income $72,000 Asset base $300,000 Weighted average cost of capital 15% Required:Compute the following amounts for the company:SHOW ALL CALCULATIONS. ROUND EACH NUMBER TO TWO (2) DECIMAL PLACES. A. Return on investment (ROI). B. Residual income if the desired rate of return is 20%. C. EVA. D. Turnover. E. Margin.XY Company provided you the following data: Average operating assets 120,000 Margin on sales 15% Minimum required rate of return 20% Return on investment 25% Sales 300,000 Turnover 2.50 What is the residual income? (Correct ans: 21,000) need solution
- 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. What is the return on investment for Division A? A. 20% B. 25% C. 33% D. 40%The following selected data pertain to the Argent Division for last year: Required: 1. How much is the residual income? 2. How much is the return on investment? (Rounded to four significant digits.)The Break Division of Zoe motors Company had the following financial data for the year: Assets available for use P 1,000,000 BV P1,500,000 MV Residual income P 100,000 Return on investment 15% A. What was the Break Division’s segment income? B. If the manager of the Break Division is evaluated based on return on investment, how much would she willing to pay for an investment that promise to increase net segment income by P50,000?
- The Central Division of Chemical Company has a return on investment of 20% and an investment turnover of 1.95. What is the profit margin? Round the percentage to two decimal places. a.15.38% b.12.31% c.8.21% d.10.26%The Central Division for Chemical Company has a return on investment of 30% and an investment turnover of 2.42. The profit margin (rounded to two decimal places) is a. 9.92% b. 18.60% O c. 14.88% O d. 12.40%Kyle Corporation provides the following information for the Product Division and Service Division for the year. Product Division Service Division 420,000 $ 650,000 195,000 245,000 640,000 610,000 14.0% 14.0% Net sales Operating income Average total assets Target rate of return $ Requirement 1. Calculate the return on investment for each division. (Enter answers as a percent rounded to the nearest hundredth percent, X.XX%) The return on investment for the Product Division is The return on investment for the Service Division is Requirement 2. Which division has the highest ROI? % % Requirement 3. Calculate the residual income for each division. (Round answers to the nearest whole dollar.) The residual income for the Product Division is The residual income for the Service Division is Requirement 4. Which division has the highest residual income?
