Question

Provide the missing data in the following table for a distributor of martial arts products: (Enter "Turnover" and "ROI" answers to 1 decimal place.) Division Alpha Charlie Sales $ $ Bravo 278,000 38,920 $ 44,655 $ 437,000 Net operating income Average operating assets Margin Turnover Return on investment (RON)

Answer 1

Alpha $ 1,748,000S $ 122,360 S 437,000 Sales Net operating income Average Operating assets Margin Turnover Return on Investment (ROI) Division Bravo 278,000 S 38.920 S 139,000 1419 Charlie $343,500 S 44,655 $ 229,000 131% 2.01 1.5 4.01 28.01% 28.019 19.5% Working Notes : Alpha Turnover = Sales / Average operating assets 4.00 = Sales/ $437,000 Sales = $437,000*4 = $1,748.000 Margin = Net Operating Income sales 7% = Net Operating Income / $1,748,000 Net Operating Income = $1,748,000*7% = $122.360 Return on Investment = Net Operating Income / Average Operating assets = $122,360/$437,000 = 28.0%

Bravo Return on Investment = Net Operating Income Average Operating assets 28% = $38,920/ avearge operating assets Average Operating assets = $38.920*100/28 = $139,000 Margin = Net Operating Income sales = $38.920/$278.000 = 14% Turnover = Sales / Average operating assets = $278,000/$139,000 = 2.0 Charlie Margin = Net Operating Income sales 13% = $44,655 / sales Sales = $44,655/13% = $343,500 Return on Investment = Net Operating Income / Average Operating assets 19.5% = $44,655 / average Operating assets Average Operating assets = 544.655/19.5% = $229,000 Turnover = Sales / Average operating assets = $343,500/5229,000 = 1.5