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Orange Corp. has two divisions: Fruit and Flower. The following information for the past year is available for each division Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets Fruit Division Flower Division $ 1.620,NNO $ 2,430,689 1.134.000 1.822.589 $ 486,000 $ 687,569 $ 4,050,000 $ 2,430,000 Orange has established a hurdle rate of 10 percent Required: 1-a. Compute each division's return on investment (ROI) and residual income for last year. 1-b. Determine which...
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answer Req 2
Orange Corp. has two divisions: Fruit and Flower. The following information for the past year is available for each division: $ Pruit Division 1,140,000 855,000 ,000 Sales revenue Cost of goods sold and operat Net operating income Average invested assets $ Flower Division 1,710,000 1,282,500 427,500 2,375,000 N $ $ 11 Orange has established a hurdle rate Required: 1-a. Compute each division's return on investment (ROI) and residual income for last year. 1-b. Determine which manager seems...
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show all work
Orange Corp. has two divisions: Fruit and Flower. The following information for the past year is available for each division: Fruit Division Division $ $ Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets Flower Division 1.710.000 1,282,500 427,500 2,375,000 1,140,000 855.000 285,000 4,750,000 $ $ $ $ Orange has established a hurdle rate of 5 percent. Required: 1-a. Compute each division's return on investment (ROI) and residual income for last...
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Orange Corp. has two divisions: Fruit and Flower. The following information for the past year is available for each division: Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets Fruit Division Flower Division $ 660,000 $ 990,000 495,000 742,500 $ 165,000 $ 247,500 $ 2,062,500 $ 1,375,000 Orange has established a hurdle rate of 5 percent. Required: 1-a. Compute each division's return on investment (ROI) and residual income for last year. 1-b. Determine which...
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Orange Corp. has two divisions: Fruit and Flower. The folowing information for the past year is available for each division: Fruit Division 1,500,000 Flower Division 2,250,000 1,687,500 Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets $ 1,125,000 375,000 3.125,000 $ 562,500 2,343,750 $ $ Orange has established a hurdle rate of 8 percent. Required: 1-a. Compute each division's return on investment (ROI) and residual income for last year. (Enter your ROI answers as...
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Orange Corp, has two divisions: Fruit and Flower. The following information for the past year is available for each division Flow $ $ Fra Division 1.400.000 1. ORD.000 360,000 Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets 2.160000 1.620.000 $ 3.000.000 $ 2,160,000 Orange has established a hurdle rate of 8 percent. Required: 1-a. Compute each division's return on investment (ROI) and residual income for last year. (Enter your ROI answers as a...
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Orange Corp. has two divisions: Fruit and Flower. The following
information for the past year is available for each
division:
Fruit Division
Flower Division
Sales Revenue
960,000
1,440,000
Cost of Goods sold and operating Expenses
720,000
1,080,000
Net Operating Income
240,000
360,000
Average Invested Assets
2,000,000
2,000,000
Orange has established a hurdle rate of 7 percent.
Required:
1-a. Compute each division’s return on investment
(ROI) and residual income for last year.
1-b. Determine which manager seems to be
performing better....
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Orange Corp. has two divisions: Fruit and Flower. The following
information for the past year is available for each division:
Fruit Division Flower
Division Sales revenue $
1,740,000 $ 2,610,000 Cost of
goods sold and operating expenses
1,392,000 1,957,500 Net
operating income $ 348,000
$ 652,500 Average invested
assets $ 3,480,000
$ 2,718,750 2. Suppose Orange is investing in new
technology that will increase each division’s operating income by
$131,000. The total...
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#5
Orange Corp. has two divisions: Fruit and Flower. The following information for the past year is available for each division: Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets Fruit Division Flower Division S 1620,000 S 2,430,000 1,822 500 607,500 S 4,050,000 S 2,430,000 1.134000 486,000 S Orange has established a hurdle rate of 10 percent. Required: 1-a. Compute each division's return on investment (ROl) and residual income for last year. (Enter your...
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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 $ 12,600,000 $ 3,150,000 $ 516,600 9.00% Division B $ 35,750,000 $ 7,150,000 572,000 9.50 Division C $20,600,000 $ 5,150,000 5 597,480 11.60% 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...
Orange Corp. has two divisions: Fruit and Flower. The following information for the past year is available for each division Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets Fruit Division Flower Division $ 1.620,NNO $ 2,430,689 1.134.000 1.822.589 $ 486,000 $ 687,569 $ 4,050,000 $ 2,430,000 Orange has established a hurdle rate of 10 percent Required: 1-a. Compute each division's return on investment (ROI) and residual income for last year. 1-b. Determine which...
answer Req 2
Orange Corp. has two divisions: Fruit and Flower. The following information for the past year is available for each division: $ Pruit Division 1,140,000 855,000 ,000 Sales revenue Cost of goods sold and operat Net operating income Average invested assets $ Flower Division 1,710,000 1,282,500 427,500 2,375,000 N $ $ 11 Orange has established a hurdle rate Required: 1-a. Compute each division's return on investment (ROI) and residual income for last year. 1-b. Determine which manager seems...
show all work
Orange Corp. has two divisions: Fruit and Flower. The following information for the past year is available for each division: Fruit Division Division $ $ Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets Flower Division 1.710.000 1,282,500 427,500 2,375,000 1,140,000 855.000 285,000 4,750,000 $ $ $ $ Orange has established a hurdle rate of 5 percent. Required: 1-a. Compute each division's return on investment (ROI) and residual income for last...
Orange Corp. has two divisions: Fruit and Flower. The following information for the past year is available for each division: Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets Fruit Division Flower Division $ 660,000 $ 990,000 495,000 742,500 $ 165,000 $ 247,500 $ 2,062,500 $ 1,375,000 Orange has established a hurdle rate of 5 percent. Required: 1-a. Compute each division's return on investment (ROI) and residual income for last year. 1-b. Determine which...
Orange Corp. has two divisions: Fruit and Flower. The folowing information for the past year is available for each division: Fruit Division 1,500,000 Flower Division 2,250,000 1,687,500 Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets $ 1,125,000 375,000 3.125,000 $ 562,500 2,343,750 $ $ Orange has established a hurdle rate of 8 percent. Required: 1-a. Compute each division's return on investment (ROI) and residual income for last year. (Enter your ROI answers as...
Orange Corp, has two divisions: Fruit and Flower. The following information for the past year is available for each division Flow $ $ Fra Division 1.400.000 1. ORD.000 360,000 Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets 2.160000 1.620.000 $ 3.000.000 $ 2,160,000 Orange has established a hurdle rate of 8 percent. Required: 1-a. Compute each division's return on investment (ROI) and residual income for last year. (Enter your ROI answers as a...
#5
Orange Corp. has two divisions: Fruit and Flower. The following information for the past year is available for each division: Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets Fruit Division Flower Division S 1620,000 S 2,430,000 1,822 500 607,500 S 4,050,000 S 2,430,000 1.134000 486,000 S Orange has established a hurdle rate of 10 percent. Required: 1-a. Compute each division's return on investment (ROl) and residual income for last year. (Enter your...
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 $ 12,600,000 $ 3,150,000 $ 516,600 9.00% Division B $ 35,750,000 $ 7,150,000 572,000 9.50 Division C $20,600,000 $ 5,150,000 5 597,480 11.60% 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...