Assume the Residential Division of Kappy Faucets had the following results last year:Net sales revenue$ 6,480,000Operating income2,592,000Average total assets5,400,000Management's target rate of return16%What is the division's profit margin ratio?O A. 250%B. 48%O C. 120%O D. 40% Assume the Residential Division of Kipper Faucets had the following results last year:Net sales revenue$ 10,400,000Operating income1,040,000Average total assets5,200,000Management's target rate of return13%What is the division's ROI?O A. 500%O B. 200%O C. 10%O D. 20%

Ratio analysis is a method of measuring the financial position of the organization with different…

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% O B. 48% O C. 120% O D. 40%

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% O B. 48% O C. 120% O D. 40%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Return on Investment, Margin, Turnover Data follow for the Consumer Products Division of Kisler…

A: RETURN ON INVESTMENTReturn on investment is one of the profitability ratios which shows how much…

Q: The Midwest Division of Grainger Company has average assets of $200,000 and income of $40,000. What…

A: Return on Investment (ROI) is perhaps one of the most well-liked measures, and when done properly,…

Q: A company's divislon has sales of $6,000,000, Income of $240,000, and average assets of $4,800.000.…

A: Financial ratios are used to check different aspects of a company - liquidity, solvency, etc. They…

Q: want answer step by step with final answer

A: Step 1: Definition of Common Fixed Costs:Common fixed costs are those costs that cannot be traceable…

Q: Which of the choices best describe the statements below? Statement 1 Department A has Oparating…

A: Responsibility Accounting The objective of the responsibility accounting which is spread in all…

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: Cabell Products is a division of a major corporation. Last year the division had total sales of…

A: The division's return on investment is calculated by dividing the net operating income by average…

Q: Return on Investment and Residual Income The Emergency Medical Services Company has two divisions…

A: Return on investment is calculated by dividing operating income by average investment. Residual…

Q: Division Alpha Bravo Charlie Sales $ 363,000 Net operating income %24 43,560 24 78,375 Average…

A: Ratio analysis helps to analyze the financial statements of the company. The management can take…

Q: Eacher Wares is a division of a major corporation. The following data are for the latest year of…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

Q: The Millard Division's operating data for the past two years are provided below: Year 1 Year 2…

A: Return on investment is profitability ratio which shows operating income earned by investment…

Q: A division of Wheeler Co. reported ROI of 20%. If the division's asset turnover was 5, the profit…

A: Return on Investment = ROI = 20% Asset turnover = at = 5

Q: Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 5.76…

A: Return on investment is the common profitability statistic used by the business organizations so as…

Q: Compute the residual income for each division

A: The income which is earned over and above expected is income is called as Residual income. Expected…

Q: The Electronics Division of Anton Company reports the following results for the current year:…

A: ROI of a company refers to its profitability which is calculated as a ratio of the income to the…

Q: The Dry Wall Division reports the following operating data for the past two years: Year 1…

A: The objective of the question is to find the net operating income in Year 2 for the Dry Wall…

Q: The following data are available for two divisions of Solomons Company. North Division South…

A: Answer 1) ROI = Operating profit / investmentsNorth Devision = (10,515,000/49,000,000) x 100 =…

Q: Warren Company has two divisions with the following results: Sales revenue Divisional expenses…

A: Let's approach this step-by-step: a. Calculating the return on investment (ROI) for each…

Q: Part I (1) What is residual income and how is it calculated? (2) Please use the information below…

A: The ratio analysis helps to analyze the financial statements of the business with various elements…

Q: The Electronics Division of Anton Company reports the following results for the current year:…

A: Return on investment is calculated by dividing the operating income by the average operating assets.…

Q: The Computer Division's operating data for the past two years are provided below: Year 1…

A: The margin percentage shows the relationship between net income and sales, this percentage shows…

Q: Warren Company has a hurdle rate of 11.2%. a. Calculate the return on investment for each division.…

A: a)Calculation of return on investments as follows under:-

Q: Compute the return on investment for each division

A: Return on investments is a measure of profitability on investment.It is percentage of net profit…

Q: Sales Net operating income Average operating assets $17,958,000 51,005,200 5 4,898,000 The…

A: Formula: Division return on investment = ( Net operating income / Average operating Assets ) x 100

Q: Cabell Products is a division of a major corporation. Last year the division had total sales of…

A: Return on investment (ROI) = Net operating income/Average operating assets

Q: The Millard Division's operating data for the past two years are provided below: Year 1 Year…

A: The objective of the question is to find the net operating income for Year 1 of the Millard…

Q: Data follow for the Consumer Products Division of Kisler Inc.: Year 1 Year 2 Sales $9,310,000…

A: Margin = (Net operating income / Sales) Turnover = (Sales / Average operating assets) ROI = (Net…

Q: operating assets ting income required rate of return. Division A $ 12,600,000 $ 3,150,000 $ 516,600…

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

Q: hree divisions of Jameson Co. report the following sales and operating data: Fitness Training Spa…

A: ROI means return on investment which means how much returns or net income is getting generated on…

Q: The Millard Division's operating data for the past two years are provided below: Return on…

A: Lets understand the basics.Formula for calculating net operating income are,First we will need to…

Q: 1. Kristen drove the car 26,000 miles last year. Compute the average cost per mile of owning and…

A: To compute the average cost per mile of owning and operating the car, we'll first calculate the…

Q: Cabell Products is a division of a major corporation. Last year the division had total sales of…

A: The turnover ratio signify the relationship, between sales and average assets. It is commonly…

Q: ROI, Residual IncomeThe following selected data pertain to the Argent Division for last year:Sales…

A: Calculation of Residual income Residual Income = Net Income - Minimum required amount of return…

Q: company with two divisions (X and Y) prepared the following segmented income statement: Y Total 2$ ?…

A: Solution: Segment margin is the margin of the segment which is based on costs directly related to…

Q: The Willard Division's operating data for the past two years are provided below: Return on…

A: Here,ROI of Year 1 is 12%ROI of Year 2 is 36%NOI of Year 2 is $360,000Turnover of Year 2 is 3Sales…

Q: Gibson Corporation has three divisions, each operating as a responsibility center. To provide an…

A: The income statement shows the financial position of the company whether the business is making a…

Q: Required information Use the following information for the Problems below. The following data…

A: ROI means return on investment.. It is the percentage return earned by the entity on the operating…

Q: Hendersonville Meats has two divisions. The company's Outlets division sells smoked hams, sausages,…

A: EVA is economic value added for the business. This is value in excess of value calculated as per…

Question

100%

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 Kipper Faucets had the following results last year:
Net sales revenue
$ 10,400,000
Operating income
1,040,000
Average total assets
5,200,000
Management's target rate of return
13%
What is the division's ROI?
O A. 500%
O B. 200%
O C. 10%
O D. 20%

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

The Millard Division's operating data for the past two years are provided below: Year 1 Year 2 Return on investment 10% 24% Net operating income ? $380,000 Turnover ? 4 Margin ? ? Sales $3,210,000 ? Millard Division's margin in Year 2 was 120% of the margin in Year 1. The sales for Year 2 were:
Need help
Ceder Products is a division of a major corporation. Last year the division had total sales of $21.520,000, net operating income of $538,000, and average operating assets of $8,000,000. The company's minimum required rate of return is 18%. The division's turnover is closest to: A. 2.52 B. 0.07 C. 40.00 D. 2.69
Please help me with show all calculation thanku
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.
Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales $540,000 Cost of goods sold 243,000 Gross profit $297,000 Administrative expenses 135,000 Income from operations $162,000 The manager of the Consumer Products Division is considering ways to increase the return on investment. a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that $1,350,000 of assets have been invested in the Consumer Products Division. Round the investment turnover to one decimal place. Profit margin fill in the blank 1 % Investment turnover fill in the blank 2 Rate of return on investment fill in the blank 3 % b. If expenses could be reduced by $27,000 without decreasing sales, what would be the impact on the…
The following information relates to last year's operations at the Dairy Division of Carrefour Bahrain: Minimum required rate of return Return on investment (ROI) Sales Turnover (on operating assets) 11% 14.4% $ 970,000 6 times What was the Dairy Division's net operating income last year? O $139,680 $106,700 $32,980 $23,280
22.0 need help
Assume the Hiking Shoes division of the Simply Shoes Company had the following results last year (in thousands). Management's target rate of return is 30% and the weighted average cost of capital is 15%. Its effective tax rate is 30%. Sales Operating income Total assets Current liabilities What is the division's Return on Investment (ROI)? A. 68.57% B. 171.43% C. 40% O D. 22.57% $6,000,000 2,400,000 3,500,000 790,000 CO
Illumination Corporation operates one central plant that has two divisions, the Flashlight Division and the Night Light Division. The following data apply to the coming budget year Budgeted costs of operating the plant for 2,000 to 3,000 hours: Fixed operating costs per year Variable operating costs Budgeted long-run usage per year Flashlight Division Night Light Division Practical capacity $500,000 OA. $500,000 B. $625.000 OC. $600,000 D. $650,000 $500 per hour 2,000 hours 1,000 hours 4,000 hours Assume that practical capacity is used to calculate the allocation rates Actual usage for the year by the Flashlight Division was 1,500 hours and by the Night Light Division was 800 hours If a dual-rate cost-allocation method is used, what amount of operating costs will be budgeted for the Night Light Division?
The Millard Division's operating data for the past two years are provided below: Return on investment Net operating income Turnover Margin Sales Year 1 12% Year 2 36% ? $ 480,000 ? 3 ? ? $ 3,260,000 ? Millard Division's margin in Year 2 was 150% of the margin in Year 1. The net operating income for Year 1 was: (Round your intermediate percentage calculations to the nearest whole percent.) Multiple Choice $320,000 $260,800 $391,200 $782,400
Please help me