Crimson Peak Solutions is a division of a large enterprise. Data for the most recent year are as follows: Item Value Sales $25,000,000 Net Operating Income $2,000,000 Average Operating Assets $6,000,000 The division's margin is: A. 6.0% B. 8.0% C. 12.0% D. 10.0%
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- The sales, income from operations, and invested assets for each division of Grosbeak Company are as follows: Division E Division F Division G Profit Margin Investment Turnover Sales $5,000,000 4,800,000 7,000,000 Return on investment Income from Operations $550,000 860,000 860,000 a. Using the DuPont formula, determine the profit margin, investment turnover, and return on investment for each division investment to one decimal place. Division E % % Invested Assets b. Which division is the most profitable per dollar invested? $2,400,000 2,500,000 2,900,000 Division F % % Division G E % %Selected data from Division A of Green Company are as follows: Sales $ 490,000 Average investment $ 416,500 Operating income $ 83,300 Minimum rate of return 16 % Division A's asset turnover (AT) is (rounded to two decimal places):Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z Sales $ 1,416,000 $ 831,000 $ 5,294,000 Operating Income 197,400 102,700 275,600 Investment in assets 380,600 498,600 3,618,400 The return on sales (ROS) for Division X is: (Round your percentages to one decimal place.)
- Adams Cough Drops operates two divisions. The following information pertains to each division for Year 1. Division A Division B $200,000 $85,000 $ 16,100 $ 9,300 $ 59,000 $37,000 17% Sales Operating income Average operating assets Company's desired rate of return 17% Required a. Compute each division's residual income. b. Which division increased the company's profitability more? a. Division A Division B b. The division that increased the company's profitability more is Residual IncomeThe sales, operating income, and invested assets for each division of Salem Company are as follows: Sales OperatingIncome InvestedAssets Division C $4,000,000 $410,000 $3,500,000 Division D 3,500,000 600,000 4,000,000 Division E 2,250,000 780,000 7,000,000 Management has established a minimum rate of return for invested assets of 11%. a. Determine the residual income for each division. Residual Income Division C $fill in the blank 1 Division D $fill in the blank 2 Division E $fill in the blank 3 b. Based on residual income, which division is the most profitable?The sales, income from operations, and invested assets for each division of Grosbeak Company are as follows: Sales Income fromOperations InvestedAssets Division E $5,000,000 $550,000 $2,400,000 Division F 4,800,000 860,000 2,500,000 Division G 7,000,000 860,000 2,900,000 a. Using the DuPont formula, determine the profit margin, investment turnover, and rate of return on investment for each division. Round profit margin to two decimal places, investment turnover to four decimal places and rate of return on investment to one decimal place. Division E Division F Division G Profit Margin % % % Investment Turnover Rate of return on investment % % % b. Which division is the most profitable per dollar invested?
- Dickonson Products is a division of a major corporation. The following data are for the last year of operations: Sales... $16,640,000 $399,360 Net operating income Average operating assets $4,000,000 The company's minimum required rate of return. 18% The division's residual income is closest to: Select one: a. $(320,640) b. $1,119,360 c. $399,360 d. $(2,595,840)The sales, income from operations, and invested assets for each division of Wren Company are as follows: Sales Income from Operations Invested Assets Division C $5,000,000 $630,000 $4,000,000 Division D 6,800,000 760,000 3,900,000 Division E 3,750,000 750,000 7,500,000 Management has established a minimum rate of return for invested assets of 10%. What is the Residual Income for Division C? What is the Residual Income for Division D? What is the Residual Income for Division E? Based on Residual Income, Division __?__ is the most profitable.(J) Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division ADivision BDivision CSales$ 12,120,000$ 28,120,000$ 20,120,000Average operating assets$ 3,030,000$ 7,030,000$ 5,030,000Net operating income$ 496,920$ 449,920$ 503,000Minimum required rate of return7.00%7.50%10.00%Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 8% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity
- The sales, income from operations, and invested assets for each division of Wren Company are as follows: Division c Division D Division E Sales $5,000,000 6,800,000 3,750,000 Income from Operations $630,000 760,000 750,000 Invested Assets $4,000,000 3,900,000 7,500,000 Management has established a minimum rate of return for invested assets of 8%. a. Determine the residual income for each division. Division C: Division D: Division E: b. Based on residual income, which of the divisions is the most profitable?The operating income and the amount of invested assets in each division of Conley Industries are as follows: Retail Division Commercial Division Internet Division Operating Income $97,200 91,200 79,300 Invested Assets $540,000 570,000 610,000 a. Compute the return on investment for each division. (Round to the nearest whole percentage.) Division Retail Division Commercial Division Internet Division Percent % % % b. Which division is the most profitable per dollar invested? Retail DivisionWhat is the division's margin of this financial accounting question?
