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)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

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

See similar textbooks

Similar questions

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%
Assume 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% ***
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%
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)
Kindly help me with this general accounting question
Want Correct Answer
Solve this Accounting question
Solve this Accounting problem
Kindly help me with accounting questions
Solve the problem

SEE MORE QUESTIONS

Recommended textbooks for you

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

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

Publisher:

South-Western College Pub

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

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

Publisher:

South-Western College Pub

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

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%