Assume that a division of MN Company has a 10% return on sales, income of $10,000, and an investment turnover of 4 times, divisional investment is 1. $10,000 2. $25,000 3. $40,000 4. $100,000
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Assume that a division of MN Company has a 10% return on sales, income of $10,000, and an investment turnover of 4 times, divisional investment is
1. $10,000
2. $25,000
3. $40,000
4. $100,000
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- Consider the following data from two divisions of a company, P and Q: Divisional P Q Sales $ 2,000,000 $ 1,100,000 Operating Income $ 800,000 $ 660,000 Investment $ 3,200,000 $ 1,760,000 If the minimum rate of return is 9%, what is Division P's residual income (RI)?Assume the Residential Division of Kipper Faucets had the following results last year: What is the division’s RI? a. $(140,000) b. $104,000 c. $140,000 d. $(104,000)A company's divislon has sales of $6,000,000, Income of $240,000, and average assets of $4,800,000. The division's return on Investment is. Multiple Cholce 5%. 80%. 10%. 20%. 4%.
- Consider the following data from two divisions of a company, P and Q: Divisional P Q Sales $ 1,100,000 $ 1,600,000 Operating Income $ 440,000 $ 960,000 Investment $ 1,870,000 $ 3,040,000 If the minimum rate of return is 12%, what is Division P's residual income (RI)? Multiple Choice $1,817,200. $215,600. $1,047,200. $664,400. $875,600.Refer to the following information. What are the sales for Division B? Sales Net operating income Average operating assets Return on investment Margin Turnover Target ROI $208,333 O $120,000 $18,000 O $1,250,000 $1,200,000 Division A Division B ? ? $48,000 $420,000 ? 0.2 2.1 17% $18,000 ? ? 15% 0.015 14% Division C $1,345,000 $82,000 ? ? ? 20% 8%Division Y has generated sales revenue of $260,000 and achieved operating income of $18,500 using $20,000 of invested assets. If management desires a minimum rate of return of 10%, the profit margin would be _____. a.14.4% b.19.5% c.7.1% d.10.2%
- A company has the following information available for three of its divisions. COMPANY INFORMATION FOR THREE DIVISIONS Division M Investment in Assets $ 1,200,000 Division N ? Division O $ 2,500,000 Operating Income Sales Revenue ? $ 160,000 250,000 ? $ 3,200,000 ? Profit Margin Ratio 10.00% ? 6.25% Required Rate of Return 10.00% 12.50% 15.00% Return on Investment 15.00% 20.00% ? What is Division O's sales revenue? $1,666,667. $4,000,000. $2,000,000. $ 375,000.If IT Company has a 10% ROS, income of P5,000, and an investment turnover of 4 times, divisional investment is A.P5,000B.P12.500C.P20,000D.P50,000Kyle Corporation provides the following information for the Product Division and Service Division for the year. Product Division Service Division 420,000 $ 650,000 195,000 245,000 640,000 610,000 14.0% 14.0% Net sales Operating income Average total assets Target rate of return $ Requirement 1. Calculate the return on investment for each division. (Enter answers as a percent rounded to the nearest hundredth percent, X.XX%) The return on investment for the Product Division is The return on investment for the Service Division is Requirement 2. Which division has the highest ROI? % % Requirement 3. Calculate the residual income for each division. (Round answers to the nearest whole dollar.) The residual income for the Product Division is The residual income for the Service Division is Requirement 4. Which division has the highest residual income?
- go.4Assume the Residential Division of Kopper Faucets had the following results last year: Net sales revenue Operating income Average total assets Management's target rate of return What is the division's ROI? OA. 48% OB. 15% O C. 320% OD. 208% $ 16,000,000 2,400,000 5,000,000 15% ***Required information Use the following information for the Problems below: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate o on invested capital is 8 percent. Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income Division A ? $ 440,000 ? 40% 2 ? ? Division A $ 8,150,000 $ 1,630,000 $ 8,150,000 20 % 1.00 $ 978,000 20% Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return capital is 8 percent. Note: Round "Capital turnover" answers to 2 decimal places. $ $ $ Division B $ 10,000,000 $ 2,160,000 $ 2,600,000 $ Division B 40,300,000 8,866,000 10,075,000 22 % 4.00 88 % ? ? ? 8,060,000 Division C ? $ ? ? 45% ? 40% $ 139,000 Division C 25 % 20 % 471,000