Homework Answers
| P | Q | |
| Operating income | 360000 | 351000 |
| Divide by Investment | 4500000 | 3900000 |
| ROI | 8.00% | 9.00% |
| Division P will be indifferent as it's ROI will be unaffected |
| Division Q will not invest as it's ROI will decrease |
| Division P will be indifferent; Division Q will not invest. |
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Consider the following data from two divisions of a company, P and Q: Divisional Sales Operating...
Consider the following data from two divisions of a company. P and Q. Divisional Sales Operating...
Consider the following data from two divisions of a company. P and Q. Divisional Sales Operating Income Investment $1,500,000 $ 1,700,000 $ 600,000 $ 680,000 $1,950,000 $ 2,210,000 if the minimum rate of return is 8%, what is Division P's residual income (RI? Multiple Choice $444,000. C) $756.000 o $1,344,000 1452
Consider the following data from two divisions of a company, P and Q: Divisional P Q...
Consider the following data from two divisions of a company, P and Q: Divisional P Q Sales $ 1,000,000 $ 1,700,000 Operating Income $ 600,000 $ 680,000 Investment $ 1,700,000 $ 2,040,000 If the minimum rate of return is 10%, what is Division P's residual income (RI)? Multiple Choice $430,000. $770,000. $830,000. $940,000. $1,640,000.
Consider the following data for three divisions of a company, X, Y, and Z: Divisional: Sales...
Consider the following data for three divisions of a company, X, Y, and Z: Divisional: Sales Operating Income Investment in assets $1,318,000 $947,000 $5,411,000 193,000 109,500 334,700 476,700 435,500 4,500,200 The return on investment (ROI) for Division X is: Multiple Choice 0 74% 11.6% 0 25.1% 0
Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X...
Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z Sales $ 1,318,000 $ 947,000 $ 5,411,000 Operating Income 193,000 109,500 334,700 Investment in assets 476,700 435,500 4,500,200 The return on investment (ROI) for Division X is: Multiple Choice 7.4%. 11.6%. 25.1%. 31.3%. 40.5%.
The Seaton Company has two divisions the Wood Floor Division and the Tile Floor Division. Management...
The Seaton Company has two divisions the Wood Floor Division and the Tile Floor Division. Management of both divisions have been presented with the opportunity to invest in equipment that could be used to produce vinyl plank flooring. The equipment would cost $1,000,000 dollars and would incur $200,000 worth of depreciation next year. Income associated with the production of the vinyl plank flooring is estimated to be $150,000. Management of both divisions are evaluated based on their ability to improve...
Consider the following data for three divisions of a company, X, Y, and Z: Divisional: Sales...
Consider the following data for three divisions of a company, X, Y, and Z: Divisional: Sales Operating Income Investment in assets $1,468,000 $864,000 $4,601,000 219,400 181,400 233,700 560,500 747,300 2,307,300 The asset turnover (AT) for Division X is (rounded): Multiple Choice 0 0 0 0 0
Selected sales and operating data for three divisions of different structural engineering firms are given as...
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...
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...
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....
Check my work Selected sales and operating data for three divisions of different structural engineering firms...
Check my work Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A $ 5,100,000 $ 1,020,000 $ 214,200 17.00% Sales Average operating assets Net operating income Minimum required rate of return Division B $ 9, 100,000 $ 2,275,000 $ 746,200 32.80% Division C $ 8,200,000 $ 1,640,000 $ 118,900 14.00% points eBook Print References Required: 1. Compute the return on investment (ROI) for each division using the formula stated in...
Consider the following data from two divisions of a company. P and Q. Divisional Sales Operating Income Investment $1,500,000 $ 1,700,000 $ 600,000 $ 680,000 $1,950,000 $ 2,210,000 if the minimum rate of return is 8%, what is Division P's residual income (RI? Multiple Choice $444,000. C) $756.000 o $1,344,000 1452
Consider the following data for three divisions of a company, X, Y, and Z: Divisional: Sales Operating Income Investment in assets $1,318,000 $947,000 $5,411,000 193,000 109,500 334,700 476,700 435,500 4,500,200 The return on investment (ROI) for Division X is: Multiple Choice 0 74% 11.6% 0 25.1% 0
Consider the following data for three divisions of a company, X, Y, and Z: Divisional: Sales Operating Income Investment in assets $1,468,000 $864,000 $4,601,000 219,400 181,400 233,700 560,500 747,300 2,307,300 The asset turnover (AT) for Division X is (rounded): Multiple Choice 0 0 0 0 0
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....
Check my work Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A $ 5,100,000 $ 1,020,000 $ 214,200 17.00% Sales Average operating assets Net operating income Minimum required rate of return Division B $ 9, 100,000 $ 2,275,000 $ 746,200 32.80% Division C $ 8,200,000 $ 1,640,000 $ 118,900 14.00% points eBook Print References Required: 1. Compute the return on investment (ROI) for each division using the formula stated in...
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