(1)
margin = net operating income/sales
= $78000/$996000
= 7.83%
turnover = sales/average operating assets
= $996000/$503000
= 1.98 times
return on investment = net operating income/average operating assets
= $78000/$503000
= 15.51%
The contribution format income statement for Huerra Company for last year is given below: Sales Variable...
The contribution format income statement for Huerra Company for last year is given below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 40% Net income Total $ 1,004,000 602,400 401,600 321,600 80,000 Unit $ 50.20 30.12 20.08 16.08 4.00 1.60 $ 2.40 32,000 $ 48,000 The company had average operating assets of $508,000 during the year. Required: 1. Compute the company's return on investment (ROI) for the period using the ROI formula stated in terms...
The contribution format income statement for Huerra Company for last year is given below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 40% Net income Total $ 1,004,000 602,400 401,600 323,600 78,000 31,200 $ 46,800 Unit $50.20 30.12 20.08 16.18 3.90 1.56 $ 2.34 The company had average operating assets of $504,000 during the year. Required: 1. Compute the company's return on investment (ROI) for the period using the ROI formula stated in terms of...
The contribution format income statement for Huerra Company for last year is given below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 30% Net income Total Unit $4,000,000 $80.00 2,800,000 56.00 1,200,000 24.00 840,000 16.80 360,000 7.20 108,000 2.16 $ 252,000 $ 5.04 The company had average operating assets of $2,000,000 during the year. Required: 1. Compute the company's return on investment (ROI) for the period using the ROI formula stated in terms of margin...
The contribution format income statement for Huerra Company for last year is given below. Sales Variable expenses Contribution margin Pixed expenses Net operating income Income taxes 408 Net income Total $1,004,000 602,400 401,600 323,600 78.000 31,200 46,800 Unit $50.20 30.12 20.08 16.18 3.90 1.56 $ 2.34 The company had average operating assets of $510,000 during the year. Required: 1. Compute the company's return on investment (ROI) for the period using the ROI formula stated in terms of margin and turnover....
The contribution format income statement for Huerra Company for last year is given below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 30% Net income Total Unit $4,000,000 $80.00 2,800,000 56.00 1,200,000 24.00 840,000 16.80 360,000 7.20 108,000 2.16 $ 252,000 $ 5.04 The company had average operating assets of $2,000,000 during the year. Required: 1. Compute the company's return on investment (ROI) for the period using the ROI formula stated in terms of margin...
The contribution format income statement for Huerra Company for last year is given below: $ Sales Variable expenses Contribution margin Pixed expenses Net operating income Income taxes 401 Net incone Total 992.000 595,200 396,800 314,800 32,600 32.800 49,200 Unit $49.60 29.76 19.84 15.74 4.10 1.64 $ 2.46 $ The company had average operating assets of $494,000 during the year. Required: 1. Compute the company's return on investment (ROI) for the period using the ROI formula stated in terms of margin...
The contribution format income statement for Huerra Company for last year is given below: $ Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 40% Net income Total 996,000 597,600 398, 400 320,400 78,000 31,200 46,800 Unit $ 49.80 29.88 19.92 16.02 3.90 1.56 $ 2.34 $ The company had average operating assets of $503,000 during the year. For each of the following questions, indicate whether the margin and turnover will increase, decrease, or remain unchanged...
The contribution format income statement for Huerra Company for last year is given below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 40% Net income Total $ 1,004,000 602,400 401,600 321,600 Unit $ 50.20 30.12 20.08 16.08 4.00 1.60 $ 2.40 80,000 32,000 48,000 $ The company had average operating assets of $508,000 during the year. Required: 1. Compute the company's return on investment (ROI) for the period using the ROI formula stated in terms...
The contribution format income statement for Huerra Company for last year is given below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 30% Net income Total Unit $4,000,000 $80.00 2,800,000 56.00 1,200,000 24.00 840,000 16.80 360,000 7.20 108,000 2.16 $ 252,000 $ 5.04 The company had average operating assets of $2,000,000 during the year. Required: 1. Compute the company's return on investment (ROI) for the period using the ROI formula stated in terms of margin...
The contribution format income statement for Huerra Company for last year is given below: Total Unit Sales Variable expenses Contribution marain Fixed expenses Net operating income Income taxes @ 40% Net income $ 1,008,000 50.40 30.24 20.16 16.06 4.10 1.64 $ 49,200 2.46 604,800 403,200 321,200 82,000 32,800 The company had average operating assets of $496,000 during the year. Required: 1. Compute the company's return on investment (ROI) for the period using the ROI formula stated in terms of margin...