Homework Answers
Requirement 4: In the requirement it first ask to find residual income when investment is not made and then when investment is made.
| The residual income (RI) if additional investment is not made: | |
| Residual income | $ 15,120.00 |
| Working: | |
| Current operating assets | $ 432,000.00 |
| Desired ROI | 9% |
| Desired operating profit | $ 38,880.00 |
| Actual operating profit | $ 54,000.00 |
| Residual income | $ 15,120.00 |
| The residual income (RI) if additional investment is made: | |
| New Residual income | $ 16,200.00 |
| Working: | |
| New operating assets | $ 540,000.00 |
| Desired ROI | 9% |
| Desired operating profit | $ 48,600.00 |
| Actual operating profit | $ 64,800.00 |
| New Residual income | $ 16,200.00 |
| Manager of Gable ceramics division should make this investment since residual income increase by $1,080 when investment is done. |
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can i get help on requirement 4 my answer was 16,200 and its wrong. thank you...
Stenback Ceramics, a division of Berkner Corporation, has an operating income of $81,000 and total assets...
Stenback Ceramics, a division of Berkner Corporation, has an operating income of $81,000 and total assets of $450,000. The required rate of retum for the company is 14%. The company is evaluating whether it should use return on investment (ROI) or residual income (R) as a measurement of performance for its division managers. The manager of Sterback Ceramics has the opportunity to undertake a new project that will require an investment of $150,000. This investment would earn $22.500 for the...
Please help with the requirements above. Thank you! "I know headquarters wants us to add that...
Please help with the requirements above. Thank you!
"I know headquarters wants us to add that new product line," said Dell Havasi, manager of Billings Company's Office Products Division. “But I want to see the numbers before I make any move. Our division's return on investment (ROI) has led the company for three years, and I don't want any letdown." Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROI, with...
I only need this portion of the answer "I know headquarters wants us to add that...
I only need this portion of the
answer
"I know headquarters wants us to add that new product line," said Dell Havasi, manager of Billings Company's Office Products Division. "But I want to see the numbers before I make any move. Our division's return on Investment (ROI) has led the company for three years, and I don't want any letdown." Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROI, with...
Can someone please explain part 6 of the question. "I know headquarters wants us to add that new product line," said De...
Can someone please explain part 6 of the question.
"I know headquarters wants us to add that new product line," said Dell Havasi, manager of Billings Company's Office Products Division. "But I want to see the numbers before I make any move. Our division's return on investment (ROI) has led the company for three years, and I don't want any letdown." Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROI,...
“I know headquarters wants us to add that new product line,” said Dell Havasi, manager of...
“I know headquarters wants us to add that new product line,” said Dell Havasi, manager of Billings Company’s Office Products Division. “But I want to see the numbers before I make any move. Our division’s return on investment (ROI) has led the company for three years, and I don’t want any letdown.” Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROI, with year-end bonuses given to the divisional managers who...
“I know headquarters wants us to add that new product line,” said Dell Havasi, manager of...
“I know headquarters wants us to add that new product line,” said Dell Havasi, manager of Billings Company’s Office Products Division. “But I want to see the numbers before I make any move. Our division’s return on investment (ROI) has led the company for three years, and I don’t want any letdown.” Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROI, with year-end bonuses given to the divisional managers who...
“I know headquarters wants us to add that new product line,” said Dell Havasi, manager of...
“I know headquarters wants us to add that new product line,” said Dell Havasi, manager of Billings Company’s Office Products Division. “But I want to see the numbers before I make any move. Our division’s return on investment (ROI) has led the company for three years, and I don’t want any letdown.” Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROI, with year-end bonuses given to the divisional managers who...
Return on Investment and Investment Decisions Leslie Blandings, division manager of Audiotech Inc., was debating the...
Return on Investment and Investment Decisions Leslie Blandings, division manager of Audiotech Inc., was debating the merits of a new product-a weather radio that would put out a warning if the county in which the listener lived were under a severe thunderstorm or tomado alert. The budgeted income of the division was $775,000 with operating assets of $4,825,000. The proposed investment would add income of $640,000 and would require an additional investment in equipment of $4,000,000. The minimum required return...
Problem 11-18 Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] “I know headquarters wants us...
Problem 11-18 Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] “I know headquarters wants us to add that new product line,” said Dell Havasi, manager of Billings Company’s Office Products Division. “But I want to see the numbers before I make any move. Our division’s return on investment (ROI) has led the company for three years, and I don’t want any letdown.” Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis...
Could someone help me with the cells I got wrong and the question 4? Megatronics Corporation,...
Could someone help me with the cells I got wrong and the
question 4?
Megatronics Corporation, a massive retailer of electronic products, is organized in four separate divisions. The four divisional managers are evaluated at year-end, and bonuses are awarded based on ROI. Last year, the company as a whole produced a 14 percent return on its investment. During the past week, management of the company's Northeast Division was approached about the possibility of buying a competitor that had decided...
Stenback Ceramics, a division of Berkner Corporation, has an operating income of $81,000 and total assets of $450,000. The required rate of retum for the company is 14%. The company is evaluating whether it should use return on investment (ROI) or residual income (R) as a measurement of performance for its division managers. The manager of Sterback Ceramics has the opportunity to undertake a new project that will require an investment of $150,000. This investment would earn $22.500 for the...
Please help with the requirements above. Thank you!
"I know headquarters wants us to add that new product line," said Dell Havasi, manager of Billings Company's Office Products Division. “But I want to see the numbers before I make any move. Our division's return on investment (ROI) has led the company for three years, and I don't want any letdown." Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROI, with...
I only need this portion of the
answer
"I know headquarters wants us to add that new product line," said Dell Havasi, manager of Billings Company's Office Products Division. "But I want to see the numbers before I make any move. Our division's return on Investment (ROI) has led the company for three years, and I don't want any letdown." Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROI, with...
Can someone please explain part 6 of the question.
"I know headquarters wants us to add that new product line," said Dell Havasi, manager of Billings Company's Office Products Division. "But I want to see the numbers before I make any move. Our division's return on investment (ROI) has led the company for three years, and I don't want any letdown." Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROI,...
Return on Investment and Investment Decisions Leslie Blandings, division manager of Audiotech Inc., was debating the merits of a new product-a weather radio that would put out a warning if the county in which the listener lived were under a severe thunderstorm or tomado alert. The budgeted income of the division was $775,000 with operating assets of $4,825,000. The proposed investment would add income of $640,000 and would require an additional investment in equipment of $4,000,000. The minimum required return...
Could someone help me with the cells I got wrong and the
question 4?
Megatronics Corporation, a massive retailer of electronic products, is organized in four separate divisions. The four divisional managers are evaluated at year-end, and bonuses are awarded based on ROI. Last year, the company as a whole produced a 14 percent return on its investment. During the past week, management of the company's Northeast Division was approached about the possibility of buying a competitor that had decided...
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