%24三Requlred InformationThe following information applies to the questions displayed below]Westerville Company reported the following results from last year's operations:$2,300,000SalesVariable expensesContribution marginFixed expenses1,170,000Net operating income460,000Average operating assets$1,437,500At the beginning of this year, the company has a $287,500 investment opportunity with the following cost and revenuecharacteristics:SalesContribution margin ratioFixed expenses50% of sales$ 161,e00The company's minimum required rate of return is 15%.3. What is last year's return on investment (ROI)? (Round your Intermedlate calculations to1 declmal place.)< Prev4.3115of 15Next >to search近。7720F5F7F8F10F11F4F12

Return on Investment: It is the relation between the Net income or return from the business and the…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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15 ces ! Required information [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income. Average operating assets At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics: $ 200,000 60 $ 90,000 The company's minimum required rate of return is 15%. Sales Margin $ 1,000,000 300,000 700,000 500,000 $ 200,000 $ 625,000 Contribution margin ratio Fixed expenses 4. What is the margin related to this year's investment opportunity? % of sales
Economic Value Added Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last year's results: Adams Division Jefferson Division Net (after-tax) income $677,600 $315,000 Total capital employed 4,560,000 3,282,500 Washington's actual cost of capital was 13%. Required: 1. Calculate the EVA for the Adams Division. If required, enter a negative EVA as a negative number by entering your answer with the minus sign. 2. Calculate the EVA for the Jefferson Division. If required, enter a negative EVA as a negative number by entering your answer with the minus sign.
A2
Problem #5 Assume the following business and financial data for the L&N Trucking Company: The L&N Trucking Company achieved total miles driven of 2,425,000 systemwide for their latest fiscal year. For the latest fiscal year, the trucking company earned average revenue of $5.48 per mile driven. L&N Trucking's average variable cost per mile driven for the year was $2.85. The trucking company's total fixed costs for the year were $1,857,000. 5a) Show the cost-volume-profit (CVP) income statement for L&N Trucking, including contribution margin and net income, in both total dollars and per unit. 5b) Calculate the trucking company's breakeven level in both total sales dollars and units 5c) Compute L&N Trucking's margin of safety and margin of safety ratio, based on the latest year's results.
90 Marston Corporation Statement of Income for the Year Ending December 31, 2022 Using Sales Agents Using Own Sales Force $26,000,000 Sales Cost of goods sold Variable Fixed Gross margin Marketing costs Commissions Fixed costs Operating income $11,700,000 2,870,000 4,680,000 3,420,000 $26,000,000 14,570,000 11,430,000 8,100,000 $ 3,330,000 $11,700,000 2,870,000 2,600,000 5,500,000 14,570,000 11,430,000 8,100,000 $ 3,330,000 Marston is considering hiring its own sales staff to replace the network of agents. Marston will pay its salespeople a commission of 10% and incur additional fixed costs of $2,080,000. 4 Required 1. Calculate Marston Corporation's 2022 contribution margin percentage, breakeven revenues, and degree of operating leverage under each of the two scenarios. (You will first have to recast the 2022 statement of income assuming Marston had hired its own sales staff.) 2. Describe the advantages and disadvantages of each type of sales alternative. 3. In 2023, Marston uses its…
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Calculating Residual Income East Mullett Manufacturing earned operating income last year as shown in the following income statement: Sales $3,750,000 Cost of goods sold 2,250,000 Gross margin $1,500,000 Selling and administrative expense 1,200,000 Operating income $ 300,000 Less: Income taxes (@ 40%) 120,000 Net income $ 180,000 At the beginning of the year, the value of operating assets was $1,600,000. At the end of the year, the value of operating assets was $1,400,000. East Mullett requires a minimum rate of return of 5%. What is the residual income?
dreams demstime dremstph %24 The co ired rate of is 15%. Requlred Information The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: $ 2,300,000 Sales Variable expenses Contribution margin Fixed expensesi 1,630,000 1,170,000 24 460,000 $ 1,437,500 Net operating income Average operating assets At the beginning of this year, the company has a $287,500 investment opportunity with the following cost and revenue characteristics: $ 460,000 Contribution margin ratio Fixed expenses 50% of sales $ 161,000 The company's minimum required rate of return is 15%. 9. If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? (Do not round Intermedlate calculations. Round your percentage answer to 1 declmal place (I.e., 0.1234 should be considered as 12.3).)
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Residual Income The Commercial Division of Galena Company has income from operations of $143,640 and assets of $399,000. The minimum acceptable return on assets is 10%. What is the residual income for the division?$fill in the blank 1

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