Question

2. Tina Co. expects to produce 300,000 products in the coming ycar and has invested S40,000,000 in the equipment needed to produce the products. Tina requires a return on investment of 25%. Instructions What is Tinas ROI per unit?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

ROI = Net Operating Income / Average Operating Assets

or Net Operating Income =Average Operating Assets * ROI

= $ 40,000,000 *25%

= $ 10,000,000

ROI Per Unit = Net Operating Income/ Total Units

=  $ 10,000,000 / 300,000 Units

= 33.33%

Hence the correct answer is 33.33%

Add a comment
Know the answer?
Add Answer to:
2. Tina Co. expects to produce 300,000 products in the coming ycar and has invested S40,000,000...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Problems: 15 point each Problem 1: Tina Company expects to produce 100.000 products in the coming...

    Problems: 15 point each Problem 1: Tina Company expects to produce 100.000 products in the coming year and has invested so in the equipment needed to produce the products. Tina requires a return on investment of 10 Instructions What is Tina's ROI per unit? Problem 2. Nay Tag produces washing machines and dryers. The following per unit Information is available for washing machines: direct materials, $72; direct labor. $48: variable manufacturing overhead, $38; fixed manufacturing overhead, 584; variable selling and...

  • Jaymes Corporation produces high-performance rotors. It expects to produce 73,000 rotors in the coming year. It...

    Jaymes Corporation produces high-performance rotors. It expects to produce 73,000 rotors in the coming year. It has invested $9,490,000 to produce rotors. The company has a required return on investment of 20%, what i its ROI per unit? (Round answer to the nearest whole dollar, e.g. 25) ROI per unit 4

  • Jaymes Corporation produces high-performance rotors. It expects to produce 69,000 rotors in the coming year. It...

    Jaymes Corporation produces high-performance rotors. It expects to produce 69,000 rotors in the coming year. It has invested $11,040,000 to produce rotors. The company has a required return on investment of 20%. What is its ROI per unit? ROI per unit $enter the ROI per unit in dollars

  • Amanager must decide on the mix of products to produce for the coming week. Product Arequires...

    Amanager must decide on the mix of products to produce for the coming week. Product Arequires three minutes per unit for molding, two minutes per unit for painting, and one minute for packing. Product B requires two minutes per unit for molding, four minutes for painting, and three minutes per unit for packing. There will be 550 minutes available for molding, 500 minutes for painting, and 450 minutes for packing. Product A has a contribution of $1.50 per unit and...

  • Benkhadour Co. manufactures four different products. Because the quality of its products is high, the demand...

    Benkhadour Co. manufactures four different products. Because the quality of its products is high, the demand for them is greater than the company can satisfy. Based on the inquiries made by current and potential customers, you have estimated the following for the coming year: Product Estimated Demand in Units Selling Price per Unit Direct Materials Cost per Unit Direct Labour Cost per Unit A   8,000 $  50 $  5 $  5 B 24,000     60   10     9 C 20,000   150   25   30 D 30,000...

  • Question 1 Every two years, Warrior Lacrosse develops year, the company has invested $25,000 in their...

    Question 1 Every two years, Warrior Lacrosse develops year, the company has invested $25,000 in their latest stick, the Warrior-X. In addition, the firm has hired a consultant, for $10,000 to determine whether there will be a market for the stick. The consultant has advised the firm to go ahead and start Warrior expects to the new equipment will be depreciated using 3-year MACRS. In three years, Warrior plans to sell the equipment for $25,000. The company expects to produce...

  • Farrow Co. expects to sell 300,000 units of its product in the next period with the...

    Farrow Co. expects to sell 300,000 units of its product in the next period with the following results. $4,500,000 Sales (300,000 units) Costs and expenses Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses Net income 600,000 1,200,000 300,000 450,000 771,000 3,321,000 $1,179,000 The company has an opportunity to sell 30,000 additional units at $12 per unit. The additional sales would not affect its current expected sales. Direct materials and labor costs per unit would be...

  • Farrow Co. expects to sell 300,000 units of its product in the next period with the...

    Farrow Co. expects to sell 300,000 units of its product in the next period with the following results Sales (300,000 units) Costs and expenses $4,500,000 Direct materials Direct labor Overhead Selling expenses Administrative expenses 600,000 1,200,000 300,000 450,000 771,000 3,321,000 $1,179,000 Total costs and expenses Net income The company has an opportunity to sell 30,000 additional units at $13 per unit. The additional sales would not affect its current expected sales. Direct materials and labor costs per unit would be...

  • Farrow Co. expects to sell 300,000 units of its product in the next period with the...

    Farrow Co. expects to sell 300,000 units of its product in the next period with the following results $4,500,000 Sales (300,000 units) Costs and expenses Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses Net Income 600.000 1.200,00 300.000 450,000 771.000 3,321,000 $1,179, eee The company has an opportunity to sell 30,000 additional units at $13 per unit. The additional sales would not affect its current expected sales. Direct materials and labor costs per unit would...

  • Farrow Co. expects to sell 300,000 units of its product in the next period with the...

    Farrow Co. expects to sell 300,000 units of its product in the next period with the following results. Sales (300,000 units) $ 4,500,000 Costs and expenses Direct materials 600,000 Direct labor 1,200,000 Overhead 300,000 Selling expenses 450,000 Administrative expenses 771,000 Total costs and expenses 3,321,000 Net income $ 1,179,000    The company has an opportunity to sell 30,000 additional units at $12 per unit. The additional sales would not affect its current expected sales. Direct materials and labor costs per...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT