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Existing: | ||||
Mergin | 48000/998000 | 4.81% | ||
Net Opertaing Income/Sales | ||||
Turnover | 998000/510000 | 1.96 | ||
Sales/Average Operating Assets | ||||
Return on Investment | 4.81%*1.96 | 9.41% | ||
Margin*Turnover | ||||
Part - 5 | ||||
Mergin | 71952/1097800 | 6.55% | Increased | |
Net Opertaing Income/Sales | ||||
Turnover | 1097800/510000 | 2.15 | Increased | |
Sales/Average Operating Assets | ||||
Return on Investment | 6.55%*2.15 | 14.11% | Increased | |
Margin*Turnover | ||||
Working: | ||||
Sales | $ 1,097,800 | incrase by 10% | ||
Less: Variable Cost | $ 658,680 | incrase by 10% | ||
Cont Margin | $ 439,120 | |||
Less: Fixed Cost | $ 319,200 | |||
Net Operating Income | $ 119,920 | |||
Less: Tax 40% | $ 47,968 | |||
Net Income | $ 71,952 | |||
Part - 6 | ||||
Mergin | (48000-17000)/998000 | 3.11% | Decreaed | |
Net Opertaing Income/Sales | ||||
Turnover | 998000/(510000-17000) | 2.02 | Increased | |
Sales/Average Operating Assets | ||||
Return on Investment | 3.11%*2.02 | 6.29% | Decreaed | |
Margin*Turnover | ||||
Part - 7 | ||||
Mergin | 48000/998000 | 3.11% | Same | |
Net Opertaing Income/Sales | ||||
Turnover | 998000/(510000-180000) | 3.02 | Increased | |
Sales/Average Operating Assets | ||||
Return on Investment | 3.11%*3.02 | 9.39% | Decreased | |
Margin*Turnover |
The contribution format income statement for Huerra Company for last year is given below Total Unit...
The contribution format income statement for Huerra Company for last year is given below: Total Unit Sales $ 992,000 $ 49.60 Variable expenses 595,200 29.76 Contribution margin 396,800 19.84 Fixed expenses 314,800 15.74 Net operating income 82,000 4.10 Income taxes @ 40% 32,800 1.64 Net income $ 49,200 $ 2.46 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...
ONLY NEED HELP FOR QUESTIONS 4-7 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 998,000 598,800 399,200 319,200 80,000 32,000 48,000 Unit $ 49.90 29.94 19.96 15.96 4.00 1.60 $ 2.40 $ The company had average operating assets of $502,000 during the year. Required: 1. Compute the company's return on investment (ROI) for the period using...
The contribution format income statement for Huerra Company for last year is given below: Total Unit Sales $ 994,000 $ 49.70 Variable expenses 596,400 29.82 Contribution margin 397,600 19.88 Fixed expenses 315,600 15.78 Net operating income 82,000 4.10 Income taxes @ 40% 32,800 1.64 Net income $ 49,200 $ 2.46 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...
The contribution format income statement for Huerra Company for last year is given below: Total Unit Sales $ 992,000 $ 49.60 Variable expenses 595,200 29.76 Contribution margin 396,800 19.84 Fixed expenses 312,800 15.64 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 $492,000 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: 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...
The contribution format income statement for Huerra Company for last year is given below: Total Unit Sales $ 992,000 $ 49.60 Variable expenses 595,200 29.76 Contribution margin 396,800 19.84 Fixed expenses 312,800 15.64 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 $492,000 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: Total Unit Sales $1,004,000 $50.20 Variable expenses 602,400 30.12 Contribution margin 401,600 20.08 Fixed expenses 317,600 15.88 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 $498,000 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: Total Unit Sales $1,004,000 $50.20 Variable expenses 602,400 30.12 Contribution margin 401,600 20.08 Fixed expenses 317,600 15.88 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 $498,000 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...
The contribution format income statement for Huerra Company for last year is given below: Total Unit Sales $ 992,000 $ 49.60 Variable expenses 595,200 29.76 Contribution margin 396,800 19.84 Fixed expenses 318,800 15.94 Net operating income 78,000 3.90 Income taxes @ 40% 31,200 1.56 Net income $ 46,800 $ 2.34 The company had average operating assets of $499,000 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: Total Unit Sales $ 1,008,000 $ 50.40 Variable expenses 604,800 30.24 Contribution margin 403,200 20.16 Fixed expenses 327,200 16.36 Net operating income 76,000 3.80 Income taxes @ 40% 30,400 1.52 Net income $ 45,600 $ 2.28 The company had average operating assets of $492,000 during the year. Required: 1. Compute the company’s return on investment (ROI) for the period using the ROI formula stated in terms...