Bonita Industries had average operating assets of $6300000 and sales of $3550000 in 2022. If the controllable margin was $693000, the ROI was O 11% O 20% 40% O 56%
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A: Solution: Minimum Target income = Operating income - residual income = 37000 - 16600 = 20,400
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- Selected data from Division A of Green Company are as follows: Sales $ 630,000 Average investment $ 491,400 Operating income $ 81,900 Minimum rate of return 15% If the minimum rate of return was 11% (instead of the percentage shown above), Division A's residual income (RI) would be:LaLa Company has income from operations of $23,280, invested assets of $97,000, and sales of $388,000. What is the return on investment (ROI) for this company? Group of answer choices 24% 25% 100% none of theseU.S. Steal has the following income statement data: Total Operating Units Sold 80,000 Variable Fixed Total Total Income (Loss) $ 170,000 230,000 Costs Costs Costs Revenue $ 160,000 $ 70,000 $ 230,000 $ 400, 000 500,000 100,000 200,000 70,000 270,000 The top row of the table has the beginning values and the bottom row of the table has the ending values. a. Compute the degree of operating leverage (DOL) based on the formula below. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Percent change in operating income DOL Percent change in units sold Degree of operating leverage 1.41 b. Recompute DOL using the formula given below. There may be a slight difference due to rounding. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) O(P - vc) Q(P - VC) - FC DOL Q represents beginning units sold (all calculations should be done at this level). P can be found by dividing total revenue by units sold. VC can be found by…
- • Assume that the operating results for last year were as follows: Sales $360,000 Less: Varlable expenses 144.000 Contribution margin 216.000 Less: Fixed expenses 180.000 Net operating income $ 36,000 a. Compute the degree of operating leverage at the current level of sales. Degree of operating leverageTennill Inc. has a $1,400,000 investment opportunity with the following characteristics: Sales $ 4,480,000 40 % of sales Contribution margin ratio Fixed expenses S 1,657,600 The ROI for this year's investment opportunity is closest to: A) 8.1% B) 128.0 % C) 3.0% D) 9.6% 33)Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Sales Costs $ 29,000 Assets 13,500 Net income $15,500 Total $9,800 The company has predicted a sales increase of 12 percent. It has predicted that every item on the balance sheet will increase by 12 percent as well. Create the pro forma statements and reconcile them. What is the plug variable here? Multiple Choice O O O $24,384 $16,655 $16,642 Balance Sheet $9,800 Debt $16,649 $ 4,100 5,700 $9,800 Equity Total
- --/1 Question 3 View Policies Current Attempt in Progress rt Bonita Industrieshad average operating assets of $5000000 and sales of $2500000 in 2016. If the controllable margin was $750000, the ROI was O 60% O 30% O 15% O 50% bp ho 144If sales are $325,000, variable costs are 75% of sales, and operating income is $45,600, what is the operating leverage? a. 1.3 b. 1.8 c. 0.0 d. 5.3Larger Company had originally expected to earn operating income ofPhp130,000 in the coming year. Its degree of operating leverage is 2.4.Recently, larger revised its plan and now expects to increase sales by 20%next year. What is the percentage change in operating income for thecoming year? a. 8.33%b. 48.00%c. 20.00%d. 54.17%
- Marshall Corporation had $220,000 in invested assets, sales of $242,000, operating income of $66,000, and a desired minimum return on investment of 3%. The return on investment for Marshall Corporation is a. 3.0% b. 27.3% c. 30% d. 9.1%GenoPearls Inc. has the following data for the year 2021:· Margin of safety is P 10,000 · Variable expense of P 8,000· Fixed expense of P 4,000 (all cash)· Margin of safety ratio of 12.50%.· Selling price is P 10 per unit· Degree of operating leverage is 8· Degree of financial leverage is 4.5· EBIT (Earnings before interest and taxes) of P 4,000. · The company has total depreciable assets of P 82,000 with salvage value of P 2,000 and useful life of 20 years. (Straight line method was used in computation of annual depreciation) Compute the cash break evenPine Corp. has revenues of $520,000 resulting in an operating income of $66,560. Invested assets total $611,000. Residual income is $24,000. Calculate the new residual income if sales increase by 10% and the profit margin and invested assets remain the same. (Do not round your intermediate calculations.) A $0 B $30,656 C $42,560 D $10,496