Homework Answers
Correct answer------------Income / Average invested assets.
.
ROI or return on investment is calculated by dividing net income with Average asset invested. Average asset means }(Beginning asset + ending asset) divided by 2}.
ROI is shown as a percentage.
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Calculating return on investment for an investment center is defined by the following formula: Multiple Choice...
Return on investment can be split into which of the following two measures? Multiple Choice Investment...
Return on investment can be split into which of the following two measures? Multiple Choice Investment center income and profit margin. Profit margin and net income. Investment center average assets and investment turnover Residual income and operating income. Profit margin and investment turnover
Investment Center A B Sales $ ? $ 11,500,000 Net income $ 453,000 $ ? Average...
Investment Center
A
B
Sales
$
?
$
11,500,000
Net income
$
453,000
$
?
Average invested assets
$
1,510,000
$
?
Profit margin
6
%
?
%
Investment turnover
?
2.0
Return on investment
?
%
12
%
Use the information in the following table to compute each
department’s contribution to overhead (both in dollars and as a
percent). (Round your final answers to 2 decimal
places.)
Profit Margin: Choose Numerator / Choose Denominator: = Profit Margin Investment...
help:/ apter 24 Problems Investment Center $10,400,000 $ $ Sales ? Net income $ 352,000 Average...
help:/
apter 24 Problems Investment Center $10,400,000 $ $ Sales ? Net income $ 352,000 Average te $1,400,000 invested assets Profit margin Investment turnover Return on investment 1.5 128 O Use the information in the following table to compute each department's contribution to overhead (both in dollars and as a percent). (Round your final answers to 2 decimal places.) ce Profit Margin: Choose Numerator: Choose Denominator Profit Margin Investment Coner Profit margin 8.00% Investment Turnover Choose Numerator: Choose Denominator Investment...
Investment Center income ^ 565,20 $12,100,000 2 $ 565,200 $1,570,000 $12,100 $22,100,000 $ Sales Net income...
Investment Center income ^ 565,20 $12,100,000 2 $ 565,200 $1,570,000 $12,100 $22,100,000 $ Sales Net income Average invested assets Profit margin Investment turnover Return on investment Use the information in the following table to compute each department's contribution to overhead (both in dollars and as a percent). (Round your final answers to 2 decimal places.) Profit Margin: Choose Numerator: Choose Denominator Investment Center A - Profit Margin - Profit margin 8 .00% / / Investment Turnover: Choose Numerator: Investment Center...
Mastery Problem: Return on Investment, margin, and turnover Return on Investment (ROI) The manager of an...
Mastery Problem: Return on Investment, margin, and turnover Return on Investment (ROI) The manager of an investment center should be evaluated based on revenues, costs, and investments. An evaluation based on net income ignores the amount of investment the investment center required. One way to measure operating profit in relation to investment is a calculation called the return on investment. One formula for calculating return on investment is: Operating income Invested Assets ROI is effective because it takes into consideration...
E10-5 Calculating Return on Investment, Residual Income, Determining Effect of Changes in Sales, Expenses, Invested Ass...
E10-5 Calculating Return on Investment, Residual Income, Determining Effect of Changes in Sales, Expenses, Invested Assets, Hurdle Rate on Each [LO 10-4, 10-5] Solano Company has sales of $900,000, cost of goods sold of $570,000, other operating expenses of $46,000, average invested assets of $2,600,000, and a hurdle rate of 12 percent. Required: 1. Determine Solano's return on investment (ROI), investment turnover, profit margin, and residual income. (Do mediate calculations. Enter your ROI and Profit Margin percentage answer to the...
Two investment centers at Marshman Corporation have the following current-year income and asset data: Investment center...
Two investment centers at Marshman Corporation have the following current-year income and asset data: Investment center income Investment center average invested assets Investment Investment Center A Center B $ 420,000 $ 530,000 $2,500,000 $2,000,000 The return on investment (ROI) for Investment Center A is: Multiple Choice 588.30% 24.30% 16.80% 39.60 19.30
Two investment centers at Marshman Corporation have the following current-year income and asset data: Investment center...
Two investment centers at Marshman Corporation have the following current-year income and asset data: Investment center income Investment center average invested assets Center A Center B s 455,000 565,000 $3,200,000 $2,350,000 The return on investment (ROI) for Investment Center A is: Multiple Choice 658.30% 25.70% 14.22% 42.40 20.70
Calculating Average Operating Assets, Margin, Turnover, and Return on Investment Barnard Manufacturing earned operating...
Calculating Average Operating Assets, Margin, Turnover, and Return on Investment Barnard Manufacturing earned operating income last year as shown in the following income statement: Sales $4,000,000 Cost of goods sold 2,100,000 Gross margin $1,900,000 Selling and administrative expense 1,100,000 Operating income $ 800,000 Less: Income taxes (@ 40%) 320,000 Net income $480,000 At the beginning of the year, the value of operating assets was $2,700,000. At the end of the year, the value of operating assets was $2,300,000. Required: For...
The downtown branch of Emily’s Bakery is organized as an investment center. The following information is...
The downtown branch of Emily’s Bakery is organized as an investment center. The following information is available for the current year. Sales .............................................................................................................. $448,000 Variable expenses.......................................................................................... $217,000 Traceable fixed costs..................................................................................... $230,000 Average total assets invested in this segment.................................................. $168,000 Compute the following measures for this investment center: a Contribution margin: $____________ b Contribution margin ratio: ____________% c Responsibility margin: $____________ d Return on assets: ____________% e Increase in responsibility...
Return on investment can be split into which of the following two measures? Multiple Choice Investment center income and profit margin. Profit margin and net income. Investment center average assets and investment turnover Residual income and operating income. Profit margin and investment turnover
Investment Center
A
B
Sales
$
?
$
11,500,000
Net income
$
453,000
$
?
Average invested assets
$
1,510,000
$
?
Profit margin
6
%
?
%
Investment turnover
?
2.0
Return on investment
?
%
12
%
Use the information in the following table to compute each
department’s contribution to overhead (both in dollars and as a
percent). (Round your final answers to 2 decimal
places.)
Profit Margin: Choose Numerator / Choose Denominator: = Profit Margin Investment...
help:/
apter 24 Problems Investment Center $10,400,000 $ $ Sales ? Net income $ 352,000 Average te $1,400,000 invested assets Profit margin Investment turnover Return on investment 1.5 128 O Use the information in the following table to compute each department's contribution to overhead (both in dollars and as a percent). (Round your final answers to 2 decimal places.) ce Profit Margin: Choose Numerator: Choose Denominator Profit Margin Investment Coner Profit margin 8.00% Investment Turnover Choose Numerator: Choose Denominator Investment...
Investment Center income ^ 565,20 $12,100,000 2 $ 565,200 $1,570,000 $12,100 $22,100,000 $ Sales Net income Average invested assets Profit margin Investment turnover Return on investment Use the information in the following table to compute each department's contribution to overhead (both in dollars and as a percent). (Round your final answers to 2 decimal places.) Profit Margin: Choose Numerator: Choose Denominator Investment Center A - Profit Margin - Profit margin 8 .00% / / Investment Turnover: Choose Numerator: Investment Center...
E10-5 Calculating Return on Investment, Residual Income, Determining Effect of Changes in Sales, Expenses, Invested Assets, Hurdle Rate on Each [LO 10-4, 10-5] Solano Company has sales of $900,000, cost of goods sold of $570,000, other operating expenses of $46,000, average invested assets of $2,600,000, and a hurdle rate of 12 percent. Required: 1. Determine Solano's return on investment (ROI), investment turnover, profit margin, and residual income. (Do mediate calculations. Enter your ROI and Profit Margin percentage answer to the...
Two investment centers at Marshman Corporation have the following current-year income and asset data: Investment center income Investment center average invested assets Investment Investment Center A Center B $ 420,000 $ 530,000 $2,500,000 $2,000,000 The return on investment (ROI) for Investment Center A is: Multiple Choice 588.30% 24.30% 16.80% 39.60 19.30
Two investment centers at Marshman Corporation have the following current-year income and asset data: Investment center income Investment center average invested assets Center A Center B s 455,000 565,000 $3,200,000 $2,350,000 The return on investment (ROI) for Investment Center A is: Multiple Choice 658.30% 25.70% 14.22% 42.40 20.70
Calculating Average Operating Assets, Margin, Turnover, and Return on Investment Barnard Manufacturing earned operating income last year as shown in the following income statement: Sales $4,000,000 Cost of goods sold 2,100,000 Gross margin $1,900,000 Selling and administrative expense 1,100,000 Operating income $ 800,000 Less: Income taxes (@ 40%) 320,000 Net income $480,000 At the beginning of the year, the value of operating assets was $2,700,000. At the end of the year, the value of operating assets was $2,300,000. Required: For...
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