General accounting Assume the Consumer Products Division of NexusElectronics had the following results last year: Netsales: $4,500,000 Operating income: $900,000 Averagetotal assets: $6,750,000 Management's target rate ofreturn: 15% What is the division's profit margin ratio?A. 10%B. 20%C. 15%D. 25%

Step 1: Definition of Profit Margin RatioThe profit margin ratio measures the profitability of a…

Answered: Assume the Consumer Products Division…

Survey of Accounting (Accounting I)

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Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

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Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...

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Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested assets of 180,000, and sales of 720,000. Use the DuPont formula to compute the return on investment and show (A) the profit margin, (B) the investment turnover, and (C) the return on investment.
Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the following income statement for the last year: At the beginning of last year, Elway had 28,300,000 in operating assets. At the end of the year, Elway had 23,700,000 in operating assets. Required: 1. Compute average operating assets. 2. Compute the margin and turnover ratios for last year. (Note: Round the answer for margin ratio to two decimal places.) 3. Compute ROI. (Note: Round answer to two decimal places.) 4. CONCEPTUAL CONNECTION Briefly explain the meaning of ROI. 5. CONCEPTUAL CONNECTION Comment on why the ROI for Elway Company is relatively high (as compared to the lower ROI of a typical manufacturing company).
Assume the Residential Division of Kappy Faucets had the following results last year: Net sales revenue $ 6,480,000 Operating income 2,592,000 Average total assets 5,400,000 Management's target rate of return 16% What is the division's profit margin ratio? O A. 250% B. 48% O C. 120% O D. 40%
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Assume the Residential Division of Kappy Faucets had the following results last year. Net sales revenue $ 6,600,000 Operating income 990,000 Average total assets 5,500,000 Management's target rate of return 16% What is the division's profit margin ratio? O A 120% OB. 15% OC. 667% OD. 18%
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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)
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Kyle 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?
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The Magazine Division of XYZ publication Company had the following financial data for the year: Assets available for use P 1,000,000 BV P1,500,000 MV Residual income P 100,000 Return on investment 15% A. What was the Magazine Division’s segment income? B. If the manager of the Magazine Division is evaluated based on return on investment, how much would she willing to pay for an investment that promise to increase net segment income by P50,000?

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Assume the Consumer Products Division of Nexus Electronics had the following results last year: Net sales: $4,500,000 Operating income: $900,000 Average total assets: $6,750,000 Management's target rate of return: 15% What is the division's profit margin ratio? A. 10% B. 20% C. 15% D. 25%