A company has operating income of $300,000, revenues of $1,500,000, total assets of $2,000,000 and an ROI of 15%. To improve the ROI, to increase ROI to 20%, which of the following investment turnovers would need to be achieved? A. .75 B.1.5 C. 2 D.1

A company has operating income of $300,000, revenues of $1,500,000, total assets of $2,000,000 and an ROI of 15%. To improve the ROI, to increase ROI to 20%, which of the following investment turnovers would need to be achieved? A. .75 B.1.5 C. 2 D.1

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 4BE: Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested...

See similar textbooks

Related questions

Q: Data Sales Net operating income Average operating assets Minimum required rate of return Enter a…

A: Ratio analysis is quantitive method of getting inside review of an organisation. This helps in…

Q: Refer to the following information. What are the average operating assets for Division B? Sales Net…

A: The return on investment is calculated as net income divided by average operating assets. ROI = Net…

Q: P11.49A (LO 4. 5) Return on investment is often expressed as follows: ROI Controllable margin…

A: ROI :— Profit Margin * Assets Turnover Return on investment or return on costs is a ratio between…

Q: Division A $ 12,280,000 $ 3,070,000 $ 601,720 10.00% Division B $35,350,000 $ 7,070,000 $ 600,950…

A: Return on investment (ROI) is a performance statistic used to evaluate the efficiency or…

Q: For its three investment centres, National Inc. accumulates the following data: Centre I Centre II…

A: Lets understand the basics. Return on investment shows how much operating income earned using the…

Q: 000,00 Simple ROI and Residual Income Calculations: Consider the following data: Division Y Invested…

A: Simple ROI is calculated by dividing the income by invested capital, and Residual income is…

Q: Margin, Turnover, Return on Investment Pelak Company had sales of $4,887,000, expenses of…

A: Operating income = Sales - Expenses Margin = Operating income/Sales Turnover = Sales/Average…

Q: The business units of contractor companies carry out investment expenditures for a capital of…

A: Capital budgeting is the process of decision making used to evaluate the profitability of the…

Q: The following info is provided for three operating divisions. The minimum accepted rate of return by…

A: The return on investment is calculated as net income divided by average invested assets. The…

Q: A financial manager must choose between four alternative Assets: A, B, C, and D. Each asset costs…

A: Here,

Q: Steel corporation presented the following results for the period just ended: Sales 6,000,000…

A: Sales = 6,000,000 Capital Investment = 2,000,000 Net Income = 1,000,000

Q: Two investment centers at Marshman Corporation have the following current-year income and asset…

A: The financial ratio are calculated to compare the different elements of the financial statements of…

Q: The following data pertain to Dakota Division's most recent year of operations.

A: Sales Margin: This ratio tells us how much profit is generated over a company's sales. It is…

Q: Assume the Residential Division of Kipper Faucets had the following results last year: What is the…

Q: Need help

A: c. Division's Return on Investment (ROI)ROI is a profitability ratio that measures the amount of…

Q: Sales sent centers, Indigo Company accumulates the following data: Controllable margin Average…

A: Return on investment can be calculated as dividing controllable margin by average operating assets.…

Q: Briggs Company has operating income of $13,824, invested assets of $96,000, and sales of $230,400.…

A: a. Profit margin; Profit margin=Income from operationsSales×100=$13,824$230,400×100=6%

Q: Briggs Company has operating income of $33,516, invested assets of $133,000, and sales of $478,800.…

A: given, operating income =$33,516 invested assets = $133,000 sales =$478,800

Q: Refer to the following information. What are the sales for Division B? Sales Net operating income…

A: The business entities are required to subtract all running costs from all income received so as to…

Q: SE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM Left-Aid Corporation DPS $2.45 Total…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: For its three investment centers, Flint-Company accumulates the following data: Sales Controllable…

A: revised Contribution margin / avg Operating Assets

Q: Shalom Company provided you the following data: Net operating income Total liabilities Contribution…

A: Return on investment is the amount of return earned by the entity on the investment made. It is a…

Q: Data Sales $25,000,000 Net operating income $3,000,000 Average operating assets…

A: Return on Investment: This percentage shows how much profit we have made by investing in how many…

Q: For its three investment centres, Stahl Company accumulates the following data: Centre I…

A: Lets understand the basics. For calculating expected return on investment, we need to use below…

Question

A. .75

B.1.5

C. 2

D.1

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Required: a. Firm D has net income of $54,000, sales of $1,200,000, and average total assets of $750,000. Calculate the firm's margin, turnover, and ROI. b. Firm E has net income of $132,000, sales of $2,200,000, and ROI of 9.6%. Calculate the firm's turnover and average total assets. c. Firm F has ROI of 12%, average total assets of $1,500,000, and turnover of 0.8. Calculate the firm's sales, margin, and net income. Complete this question by entering your answers in the tabs below. Required A Required B Required C Firm D has net income of $54,000, sales of $1,200,000, and average total assets of $750,000. Calculate the firm's margin, turnover, and ROI. Note: Do not round intermediate calculations. Round your answers to 1 decimal place. Margin Turnover ROI % %
Required: a. Firm D has net income of $54,250, sales of $1,085,000, and average total assets of $775,000. Calculate the firm's margin, turnover, and ROI. b. Firm E has net income of $100,100, sales of $1,540,000, and ROI of 7.15%. Calculate the firm's turnover and average total assets. c. Firm F has ROI of 13.00 %, average total assets of $1,600,000, and turnover of 0.8. Calculate the firm's sales, margin, and net income. Complete this question by entering your answers in the tabs below. Required A Required B Required C Firm F has ROI of 13.00 %, average total assets of $1,600,000, and turnover of 0.8. Calculate the firm's sales, margin, and net income. Note: Do not round intermediate calculations. Round "Turnover" answer to 2 decimal places. Margin Sales Net income % Required: a. Firm D has net income of $54,250, sales of $1,085,000, and average total assets of $775,000. Calculate the firm's margin, turnover, and ROI. b. Firm E has net income of $100,100, sales of $1,540,000, and ROI…
Required: a. Firm D has net income of $26,500, sales of $970,000, and average total assets of $380,000. Calculate the firm's margin, turnover, and ROI. b. Firm E has net income of $69,000, sales of $1,150,000, and ROI of 13%. Calculate the firm's turnover and average total assets. c. Firm F has ROI of 12.60%, average total assets of $1,864,500, and turnover of 1.40. Calculate the firm's sales, margin, and net income. Complete this question by entering your answers in the tabs below. Required A Firm D has net income of $26,500, sales of $970,000, and average total assets of $380,000. Calculate the firm's'margin, turnover, and ROI. Note: Do not round intermediate calculations. Round your answers to 1 decimal place. Margin Turnover ROI Required B Required C Required A % % Required: a. Firm D has net income of $26,500, sales of $970,000, and average total assets of $380,000. Calculate the firm's margin, turnover, and ROI. b. Firm E has net income of $69,000, sales of $1,150,000, and ROI of…
Required: a. Firm D has net income of $39,000, sales of $1,300,000, and average total assets of $650,000. Calculate the firm's margin, turnover, and ROI. b. Firm E has net income of $141,600, sales of $2,360,000, and ROI of 12%. Calculate the firm's turnover and average total assets. c. Firm F has ROI of 60.00%, average total assets of $325,000, and turnover of 4.00. Calculate the firm's sales, margin, and net income. Complete this question by entering your answers in the tabs below. Required A Required B Required C Firm D has net income of $39,000, sales of $1,300,000, and average total assets of $650,000. Calculate the firm's margin, turnover, and ROI. Margin Turnover ROI %6 96
S Firm J has net income of $124,800, sales of $960,000, and average total assets of $640,000. Required: Calculate Firm J's margin, turnover, and return on investment (ROI). Choose Numerator: Choose Numerator: Choose Numerator: Margin /Choose Denominator: Turnover /Choose Denominator: 1 1 Return on Investment /Choose Denominator: 1 1 11 11 II 11 = = || = = II Margin Margin Turnover Turnover Return on Investment Return on Investment
14. Briggs Company has operating income of $33,516, invested assets of $133,000, and sales of $478,800. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin ____ % b. Investment turnover ____ c. Return on investment ____ %
3
Selected data from an investment center of IROL Inc. follow:Sales $8,000,000Net book value of assets, beginning 2,500,000Net book value of assets, ending 2,600,000Net operating income 640,000Minimum rate of return 12%Required1. Calculate return on sales (ROS), asset turnover (AT), and return on investment (ROI).2. Calculate residual income (RI).
What is the Investment Turnover for Stevenson Corporation, given the following info: Invested Assets = $550,000 Sales = $660,000 Income from Operations = $99,000 Desired minimum rate of return = 15.0% 01.0 1.2 1.1 1.3
Margin, Turnover, Return on Investment Pelak Company had sales of $4,945,000, expenses of $4,566,000, and average operating assets of $3,690,000. Required: 1. Compute the operating income. $ 2. Compute the margin (as a percent) and turnover ratio. If required, round your answers to one decimal place. Margin Turnover % 3. Compute the ROI as a percent. Use the part 2 final answers in these calculations and round the final answer to two decimal places. %
C
The Marine Division of Pacific Corporation has average invested assets of $110,000,000. Sales revenue of $50,280,000 results in net operating income of $9,972,000. The hurdle rate is 7%. Required a. Calculate the return on investment. b. Calculate the profit margin. c. Calculate the investment turnover. d. Calculate the residual income. Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate the return on investment. Note: Round percentage to 2 decimals. Return on Investment Required D %