Question

Req a Marque Company had sales of S330,000, a turnover of 2.6, and a return on investment of 57.2%. Based on this infromation

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

Req. a. Sales - $ 330,000

Turnover – 2.6 i.e. investment turnover

ROI – 57.2%

ROI = Margin X Turnover

Margin = ROI / Turnover

            = 57.2% / 2.6

            = 22%

Margin = Operating Income / Net Sales

22% = Operating Income / 330,000

Operating Income = $ 72,600

Add a comment
Know the answer?
Add Answer to:
Req a Marque Company had sales of S330,000, a turnover of 2.6, and a return on...
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
  • req. 2b only aler Company has sales of $1,210,000, cost of goods sold of $735,000, other...

    req. 2b only aler Company has sales of $1,210,000, cost of goods sold of $735,000, other operating expenses of $148,000, average investea ssets of $3,400,000, and a hurdle rate of 12 percent. Hequired: . Determine Kaler's return on investment (ROI), investment turnover, profit margin, and residual income 2. Several possible changes that Kaler could face in the upcoming year follow. Determine each scenario's impact on Kaler's ROI and residual income. (Note: Treat each scenario independently.) . Company sales and cost...

  • Kaler Company has sales of $1,210,000, cost of goods sold of $735,000, other operating expenses of...

    Kaler Company has sales of $1,210,000, cost of goods sold of $735,000, other operating expenses of $148,000, average invested assets of $3,400,000, and a hurdle rate of 12 percent Required: 1. Determine Kaler's return on investment (ROI), Investment turnover, profit margin, and residual income. 2. Several possible changes that Kaler could face in the upcoming year follow. Determine each scenario's impact on kaler's ROI and residual income. (Note: Treat each scenario independently) a. Company sales and cost of goods sold...

  • Kaler Company has sales of $1,610,000, cost of goods sold of $835,000, other operating expenses of...

    Kaler Company has sales of $1,610,000, cost of goods sold of $835,000, other operating expenses of $248,000, average invested assets of $5,400,000, and a hurdle rate of 11 percent. Required: 1. Determine Kaler's return on investment (RON, investment turnover, profit margin, and residual income. 2. Several possible changes that Kaler could face in the upcoming vear follow. Determine each scenario's impact on Kalers Roland residual income. (Note: Treat each scenario independently.) a. Company sales and cost of goods sold increase...

  • please answer 2B and 2C Solano Company has sales of $740,000, cost of goods sold of...

    please answer 2B and 2C Solano Company has sales of $740,000, cost of goods sold of $490,000, other operating expenses of $46,000, average invested assets of $2,200,000, and a hurdle rate of 10 percent. Required: 1. Determine Solano's return on investment (ROI), investment turnover, profit margin, and residual income. 2. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario's impact on Solano's ROI and residual income. (Note: Treat each scenario independently) a. Company sales...

  • (Just need Req 2 for both questions) Comparative data on three companies in the same service...

    (Just need Req 2 for both questions) Comparative data on three companies in the same service industry are given below: Required: 2. Fill in the missing information. (Round the "Margin" answers to 1 decimal place and "Turnover" answers to 2 decimal places.) Company В C $ $ Sales 600,000 500,000 84,000 70,000 Net operating income $ $ 300,000 1,000,000 Average operating assets 3.5% Margin % % Turnover 2.00 % 7 % Return on investment (ROI) % Exercise 10-12 Evaluating New...

  • Mastery Problem: Return on Investment, margin, and turnover Return on Investment (ROI) The manager of an...

    Mastery Problem: Return on Investment, margin, and turnover Return on Investment (ROI) The manager of an investment center should be evaluated based on revenues, costs, and investments. An evaluation based on net income ignores the amount of investment the investment center required. One way to measure operating profit in relation to investment is a calculation called the return on investment. One formula for calculating return on investment is: Operating income Invested Assets ROI is effective because it takes into consideration...

  • Kaler Company has sales of $1,290,000, cost of goods sold of $755,000, other operating expenses of...

    Kaler Company has sales of $1,290,000, cost of goods sold of $755,000, other operating expenses of $168,000, average invested assets of $3,800,000, and a hurdle rate of 11 percent Required: 1. Determine Kaler's return on investment (ROI), investment turnover, profit margin, and residual income. (Do not round your intermediate calculations. Enter your ROI and Profit Margin answer to the nearest whole percentage, (i.e., 0.1234 should be entered as 12%). Round your Investment Turnover answers to 4 decimal places.) Return on...

  • 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....

  • Selected sales and operating data for three divisions of different structural engineering firms are Division A...

    Selected sales and operating data for three divisions of different structural engineering firms are Division A $7,300,000 $ 1,460,000 467,200 27.008 Division B Division c Sales $ 11,300,000 $ 5,650,000 $ 1,175,200 $10,400,000 $2,080,000 Average operating assets Net operating income Minimum required rate of return 379,600 20.80% 24.00% Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of 2. Compute the residual income (loss) for each division. B. Assume that each division...

  • Solano Company has sales of $760,000, cost of goods sold of $500,000, other operating expenses of...

    Solano Company has sales of $760,000, cost of goods sold of $500,000, other operating expenses of $40,000, average invested assets of $2,250,000, and a hurdle rate of 11 percent. Required: 1. Determine Solano's return on investment (ROI), investment turnover, profit margin, and residual income. (Do not round your intermediate calculations. Enter your ROI and Profit Margin percentage answer to the nearest 2 decimal places, (i.e., 0.1234 should be entered as 12.34%). Round your Investment Turnover answer to 4 decimal places.)...

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