Return on investment = controllable margin/Average operating assets = 648604/2948200 = 22% |
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Residual income = Controllable margin - Required return = 648604 - (2948200*7%) = 442,230 |
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Pina, Inc. reports the following financial information. Average operating assets $2,948,200 Controllable margin $648,604 Minimum rate...
Bajalia Company compiled the following information for the year: Average operating assets Controllable margin $6,400,000 $ 800,000 Bajalia's corporate office expects the division to earn a minimum return of 10%. If Bajalia buys a new machine costing $120,000 that is expected to generate additional controllable margin of $12,000, what happens to ROI? O It will decrease to 12.45%. It will be 10%. O It will increase to 12.69%. O It will be 12.5%.
financial information Following is the of Inventor Inc. for the last fiscal year! Average operating assets $24,000,000 Operating Income * 3,840, doo Mimmum required Rate of return 10%! Calculate the residual Return of Inventor file. ♡ not
Question 33 Return on investment is often expressed as follows: Controllable margin Average opcrating asscts Controllable margin Salcs Sales Averege operating asscts (b1) Comparative data on three companies operating in the same industry follow. The minimum required ROI is 10% or all three companies Determine the missing ฮmounts. Round asset turnover of Company B הnd return on investment of Company C to 1 decimal place, e.g. 15.2 or 15.2% and all other answers to 0 decimal places, eg. 152. Enter...
Presented below is selected financial information for two divisions of Samberg Brewing. Supply the missing information for the lettered items. (Round minimum rate of return and ROI to 1 decimal place, e.g. 10.5% and round average operating assets to 0 decimal places e.g. 58,971.) Lager Lite Lager Contribution margin $499,200 $300,400 Controllable margin 200,300 (c) Average operating assets $ (a) $1,200,900 Minimum rate of return % (b) 15 % Return on investment 22 % % (d) Residual income $99,000 $204,000
Presented below is selected financial information for two divisions of Samberg Brewing. Supply the missing information for the lettered items. (Round minimum rate of return and ROI to 1 decimal place, e.g. 10.5% and round average operating assets to O decimal places e.g. 58,971.) Lager $499,700 200,400 Lite Lager $299,200 Contribution margin Controllable margin (c) Average operating assets $ (a) $1,199,800 Minimum rate of return % (b) 15 % Return on investment 23 % % (d) Residual income $99,100 $203,200
Calculating Average Operating Assets, Margin, Tumover, Return on Investment (ROI) Forchen, Inc., provided the following information for two of its divisions for last year: Small Appliances Cleaning Products Division Division Sales $34,670,000 $29,000,000 Operating income 2,773,600 1,160,000 Operating assets, January 1 6,394,000 5,600,000 Operating assets, December 31 7,474,000 6,000,000 Required: 1. For the Small Appliances Division, calculate: a. Average operating assets b. Margin C. Turnover d. Return on investment (ROI) 2. For the Cleaning Products Division, calculate: a. Average operating...
Exercise 10-21 Presented below is selected financial information for two divisions of Samberg Brewing. Supply the missing information for the lettered items. (Round minimum rate of return and ROI to 1 decimal place, e.g. 10.5% and round average operating assets to 0 decimal places e.g. 58,971.) Lager Lite Lager Contribution margin $499,700 $300,800 Controllable margin 199,900 (c) Average operating assets $ (a) $1,200,700 Minimum rate of return % (b) 12 % Return on investment 20 % % (d) Residual income...
Exercise 10-21 Presented below is selected financial information for two divisions of Samberg Brewing. Supply the missing information for the lettered items. (Round minimum rate of return and ROI to 1 decimal place, e.g. 10.5%.) Lager Lite Lager Contribution margin $300,000 $500,000 200,000 Controllable margin Average operating assets (a) $1,200,000 Minimum rate of return % (b) 11 % Return on investment 16 % % (d) Residual income $100,000 $204,000
Calculating Average Operating Assets, Margin, Turnover, Return on Investment (ROI) Forchen, Inc., provided the following information for two of its divisions for last year: Small Appliances Cleaning Products Division Division Sales Operating income Operating assets, January 1 Operating assets, December 31 Required 1. For the Small Appliances Division, calculate a. Average operating assets6,934,000 b. Margirn C. Turnover d. Return on investment (ROI) 2. For the Cleaning Products Division, calculate: a. Average operating assets5,800,000 b. Margirn C. Turnover d. Return on...
Beta Inc has the following data for last years operations: Sales................................ $100,000 Net Operating Income........ $6,000 Average Operating Assets... $40,000 Stockholders Equity............... $25,000 Minimum Required rate of return. 10% a) Compute Residual Income b) Compute return of investment Alpha Corp reported operating data as follows for the past year: Sales..................$600,000 Net Operating Income....$30,000 Average Operating Assets....$200,000 Stakeholders Equity.................. $50,000 Residual Income........................ $14,000 a) Calculate Alpha's Minimum Rate of Return b)Alpha's Margin c) Alpha's turnover