Return on investment = Net operating income /Operating assets
=$252000 /$2016000
=.125*100
=12.5%
So.the answer is 12.5%
54. What is the return on investment (RO) for ABC Company, based on its 2017 data...
2. The following data has been provided for a company's most recent year of operations: Return on investment Average operating assets Minimum required rate of return 32% $40,000 20% The residual income for the year was closest to: Given the following data: Average operating assets Total liabilities Sales Contribution margin Net operating income $688,000 $ 103, 200 $344,000 $196,080 $ 61,920 Return on investment (ROI) is: BR Company has a contribution margin of 8%. Sales are $497,000, net operating income...
Problem 10-20 Return on Investment (ROI) Analysis [LO10-1] The contribution format income statement for Huerra Company for last year is given below: Total Unit Sales $ 1,008,000 $ 50.40 Variable expenses 604,800 30.24 Contribution margin 403,200 20.16 Fixed expenses 319,200 15.96 Net operating income 84,000 4.20 Income taxes @ 40% 33,600 1.68 Net income $ 50,400 $ 2.52 The company had average operating assets of $502,000 during the year. Required: 1. Compute the company’s return on investment (ROI) for the...
Glven the following data: Average operating assets Total liabilities Sales Contribution margin $688,000 $103,200 $344,000 $196,080 $ 61,92 Net operating income 06 19 Return on investment (RO is: Multiple Choice 90% 570% 28 s%
Problem 11-15 Return on Investment (ROI) and Residual Income (LO11-1, LO11-2) Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity $ 127,000 337,000 576,000 890,000 410,000 245,000 $ 2,585,000 $ 125,000 472,000 478,000 895,000 434,000 252,000...
Given the following data: Average operating assets Total liabilities Sales Contribution margin Net operating income $512,000 $ 46,080 $384,000 $215,040 $ 46,080 Return on investment (ROI) is: o 12.0% o 9.0% o 56.0% BR Company has a contribution margin of 11%. Sales are $530,000, net operating Income is $58,300, and average operating assets are $137.000. What is the company's return on investment (ROI? Multiple Choice Ο Ο Ο Last year a company had sales of $370,000, a turnover of 2.6,...
Westerville Company reported the following results from last year’s operations: Sales$1,750,000 Variable expenses520,000 Contribution margin1,230,000 Fixed expenses880,000 Net operating income$ 350,000 Average operating assets$875,000 This year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics: Sales$320,000 Contribution margin ratio60 % of sales Fixed expenses$128,000The company’s minimum required rate of return is 20%.
Brief Exercise 10-9 For its three investment centers, Gerrard Company accumulates the following data: II III Sales $2,016,000 $4,002,000 $4,076,000 Controllable margin 1,268,250 2,623,500 4,143,240 Average operating 5,073,000 7,950,000 12,186,000 assets Compute the return on investment (ROI) for each center. II III The return on investment % Click if you would like to Show Work for this question: Open Show Work
ZNet Co. is a web-based retail company. The company reports the following for 2017 Sales Operating income Average invested assets $13,920,000 6,960,000 34,800,000 The company's CEO believes that sales for 2018 will increase by 30%, and both profit margin (%) and the level of average invested assets will be the same as for 2017 1. Compute return on investment for 2017. 2. Compute profit margin for 2017. 3. If the CEO's forecast is correct, what will return on investment equal...
Return to Sales Variable expenses Contribution margin Fixed expenses Net operating income Income taxes @ 40% Net income $ 1,008,000 604,800 403,200 323,200 80,000 32,000 $ 48,000 $ 50.40 30.24 20.16 16.16 4.00 1.60 $ 2.40 The company had average operating assets of $509,000 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. For each of the following questions, indicate whether the margin...
Calculating return on investment for an investment center is defined by the following formula: Multiple Choice ). Contribution margin/Ending assets. O Gross profit/Ending assets. O Net income/Ending assets. O Income/Average invested assets. Contribution margin/Average invested assets..