Presented below is selected information for two regional divisions of Yono Company: Divisions North West Sales...
Presented below is selected information for two regional
divisions of Yono Company:
| Divisions | |||||
| North | West | ||||
| Sales | $401,800 | $538,000 | |||
| Operating income | 61,811 | 102,968 | |||
| Average investment | 113,000 |
244,000 |
|||
Calculate the return on investment for each division and then break it down into the return on sales and investment turnover. (Round Return on sales to 1 decimal places, e.g. 5.2% and other answers to 2 decimal place, e.g. 5.25 or 5.25%.)
| North Division | |||
| Return on investment | % | ||
| Return on sales | % | ||
| Investment turnover | times |
| West Division | |||
| Return on investment | % | ||
| Return on sales | % | ||
| Investment turnover | times |
What is the residual income for each division if the required rate of return is 15%?
| Division | |||
| North | West | ||
| Residual Income | $ | ||
Assume that each division has an investment opportunity that would provide a rate of return of 23%. If the ROI is used to measure performance, which division or divisions will probably make the additional investment?
Assume the same opportunity as in (c), except that residual income is used to measure performance. Which division or divisions will probably make the additional investment?
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Presented below is selected information for two regional
divisions of Yono Company:
Divisions
North
West
Sales...
Presented below is selected information for three regional divisions of Medina Company. Divisions North West South...
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Presented below is selected information for three regional divisions of Medina Company. Divisions North West South...
Presented below is selected information for three regional
divisions of Medina Company.
Divisions
North
West
South
Contribution margin
$299,000
$499,100
$400,800
Controllable margin
$139,500
$361,100
$208,500
Average operating assets
$930,000
$1,570,000
$1,390,000
Minimum rate of return
13
%
14
%
8
%
Compute the return on investment for each division.
North Division
%
West Division
%
South Division
%
LINK TO TEXT
Compute the residual income for each division.
North Division
$
West Division
$
South Division
$
LINK TO...
North South West North and South North and West South and West North, South and West...
North South West North and South North and West South and West North, South and West Presented below is selected information for three regional divisions of Medina Company. Divisions North West South Contribution $500,900 $300,500 $401,000 margin Controllable margin $360,800 $210,000 $141,000 Average operating $940,000 $1,640,000 $1,400,000 assets Minimum rate of 13 % 14 % 10 % return Compute the return on investment for each division. North Division West Division South Division Compute the residual income for each division. North...
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: Sales Average operating assets Net operating income Minimum required rate of return Division A $ 15,300,000 $ 3,060,000 $ 703,800 9.00% Division B $ 35,300,000 $ 7,060,000 $ 529,500 9.50% Division C $20, 240,000 $ 5,060,000 $ 526,240 10.40% Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the...
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 $
6,000,000 $ 10,000,000 $ 9,100,000 Average operating assets $
1,200,000 $ 2,500,000 $ 1,820,000 Net operating income $ 306,000 $
910,000 $ 213,850 Minimum required rate of return 20.00 % 36.40 %
17.00 % 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 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 given as...
Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Net operating income Minimum required rate of return Division $12,920,000 $ 3.230.000 $ 516.800 7.000 Division $ 28,920,000 $ 7,230,000 462.720 7.500 Division $26,150,000 $5,230,000 758.350 14.50 Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division 3. Assume...
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,...
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 given as...
Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Net operating income Minimum required rate of return Division A $12,480,000 $ 3,120,000 $ 561,600 8.008 Division B $ 28,480,000 $ 7,120,000 $ 512,640 8.50% Division c $ 20,480,000 $ 5,120,000 $ 532,480 10.40% Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual...
Check my work Selected sales and operating data for three divisions of different structural engineering firms...
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Presented below is selected information for three regional
divisions of Medina Company.
Divisions
North
West
South
Contribution margin
$299,000
$499,100
$400,800
Controllable margin
$139,500
$361,100
$208,500
Average operating assets
$930,000
$1,570,000
$1,390,000
Minimum rate of return
13
%
14
%
8
%
Compute the return on investment for each division.
North Division
%
West Division
%
South Division
%
LINK TO TEXT
Compute the residual income for each division.
North Division
$
West Division
$
South Division
$
LINK TO...
North South West North and South North and West South and West North, South and West Presented below is selected information for three regional divisions of Medina Company. Divisions North West South Contribution $500,900 $300,500 $401,000 margin Controllable margin $360,800 $210,000 $141,000 Average operating $940,000 $1,640,000 $1,400,000 assets Minimum rate of 13 % 14 % 10 % return Compute the return on investment for each division. North Division West Division South Division Compute the residual income for each division. North...
Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Net operating income Minimum required rate of return Division A $ 15,300,000 $ 3,060,000 $ 703,800 9.00% Division B $ 35,300,000 $ 7,060,000 $ 529,500 9.50% Division C $20, 240,000 $ 5,060,000 $ 526,240 10.40% Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the...
Selected sales and operating
data for three divisions of different structural engineering firms
are given as follows: Division A Division B Division C Sales $
6,000,000 $ 10,000,000 $ 9,100,000 Average operating assets $
1,200,000 $ 2,500,000 $ 1,820,000 Net operating income $ 306,000 $
910,000 $ 213,850 Minimum required rate of return 20.00 % 36.40 %
17.00 % 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 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 given as follows: Sales Average operating assets Net operating income Minimum required rate of return Division $12,920,000 $ 3.230.000 $ 516.800 7.000 Division $ 28,920,000 $ 7,230,000 462.720 7.500 Division $26,150,000 $5,230,000 758.350 14.50 Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division 3. Assume...
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 given as follows: Sales Average operating assets Net operating income Minimum required rate of return Division A $12,480,000 $ 3,120,000 $ 561,600 8.008 Division B $ 28,480,000 $ 7,120,000 $ 512,640 8.50% Division c $ 20,480,000 $ 5,120,000 $ 532,480 10.40% Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual...
Check my work Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A $ 5,100,000 $ 1,020,000 $ 214,200 17.00% Sales Average operating assets Net operating income Minimum required rate of return Division B $ 9, 100,000 $ 2,275,000 $ 746,200 32.80% Division C $ 8,200,000 $ 1,640,000 $ 118,900 14.00% points eBook Print References Required: 1. Compute the return on investment (ROI) for each division using the formula stated in...
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