1) | ROI | ||||||
Fitness Training | 10% | ||||||
Spa services | 10% | ||||||
Athletic wear | 15% | ||||||
ROI = operating income/average operating assets | |||||||
Fitness | Spa | Athletic | |||||
2) | training | services | wear | ||||
Residual income | 4400 | 3200 | 12600 | ||||
Residual income = net operating income-(average operating assets* | |||||||
minimum rate of return) | |||||||
3-a) | |||||||
Fitness Training | accept | ||||||
Spa services | accept | ||||||
Athletic wear | Reject | ||||||
b) | Fitness Training | accept | |||||
Spa services | accept | ||||||
Athletic wear | accept | ||||||
2. value: 30.00 points Three divisions of Jameson Co. report the following sales and operating data:...
Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Net operating income Minimum required rate of return Division $12,920,000 $ 3.230.000 $ 516.800 7.000 Division $ 28,920,000 $ 7,230,000 462.720 7.500 Division $26,150,000 $5,230,000 758.350 14.50 Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division 3. Assume...
Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Net operating income Minimum required rate of return Division A $ 15,300,000 $ 3,060,000 $ 703,800 9.00% Division B $ 35,300,000 $ 7,060,000 $ 529,500 9.50% Division C $20, 240,000 $ 5,060,000 $ 526,240 10.40% Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the...
Selected sales and operating
data for three divisions of different structural engineering firms
are given as follows: Division A Division B Division C Sales $
6,000,000 $ 10,000,000 $ 9,100,000 Average operating assets $
1,200,000 $ 2,500,000 $ 1,820,000 Net operating income $ 306,000 $
910,000 $ 213,850 Minimum required rate of return 20.00 % 36.40 %
17.00 % Required: 1. Compute the return on investment (ROI) for
each division using the formula stated in terms of margin and
turnover....
Selected sales and operating data for three divisions of
different structural engineering firms are given as follows:
Division A
Division B
Division C
Sales
$
12,920,000
$
28,920,000
$
26,150,000
Average operating assets
$
3,230,000
$
7,230,000
$
5,230,000
Net operating income
$
516,800
$
462,720
$
758,350
Minimum required rate of return
7.00
%
7.50
%
14.50
%
Required:
1. Compute the return on investment (ROI) for each division
using the formula stated in terms of margin and turnover....
Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C Sales $ 15,050,000 $ 35,050,000 $ 25,050,000 Average operating assets $ 3,010,000 $ 7,010,000 $ 5,010,000 Net operating income $ 617,050 $ 525,750 $ 701,400 Minimum required rate of return 9.00 % 9.50 % 14.00 % Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover....
Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C Sales $ 6,900,000 $ 10,900,000 $ 10,000,000 Average operating assets $ 1,725,000 $ 5,450,000 $ 2,500,000 Net operating income $ 414,000 $ 1,090,000 $ 325,000 Minimum required rate of return 19.00 % 20.00 % 16.00 % Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover....
Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C Sales $ 5,700,000 $ 9,700,000 $ 8,800,000 Average operating assets $ 1,140,000 $ 4,850,000 $ 1,760,000 Net operating income $ 273,600 $ 853,600 $ 180,400 Minimum required rate of return 17.00 % 17.60 % 14.00 % Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover....
Selected sales and operating data for three divisions of different structural engineering firms are given as follows: 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 % 18.00 % Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover....
Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C Sales $ 6,800,000 $ 10,800,000 $ 9,900,000 Average operating assets $ 1,360,000 $ 2,700,000 $ 1,980,000 Net operating income $ 401,200 $ 1,069,200 $ 311,850 Minimum required rate of return 23.00 % 39.60 % 20.00 % Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover....
Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Net operating income Minimum required rate of return Division A $ 6,800,000 $ 1,360,000 $ 401,200 23.00% Division B $ 10, 800,000 $ 2,700,000 $ 1,069,200 39.60% $ 9,900,000 $ 1,980,000 $ 311,850 20.00% Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual...