Cullumber produces and sells two products—aluminum and vinyl. Each of these products is made in a dedicated manufacturing facility, and the product line managers are evaluated based on the product line’s return on investment. The following data is from the most recent year of operations. Aluminum Vinyl Sales $4,800,000 $4,200,000 Variable costs 2,304,000 2,355,000 Direct fixed costs 1,728,000 1,530,000 Average assets 3,200,000 1,500,000 QUESTION Calculate return on investment for each product line. (Round ROI to 2 decimal places, e.g. 5.12%.)
Cullumber produces and sells two products—aluminum and vinyl. Each of these products is made in a dedicated manufacturing facility, and the product line managers are evaluated based on the product line’s return on investment. The following data is from the most recent year of operations. Aluminum Vinyl Sales $4,800,000 $4,200,000 Variable costs 2,304,000 2,355,000 Direct fixed costs 1,728,000 1,530,000 Average assets 3,200,000 1,500,000 QUESTION Calculate return on investment for each product line. (Round ROI to 2 decimal places, e.g. 5.12%.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ch 10 Q 8
Cullumber produces and sells two products—aluminum and vinyl. Each of these products is made in a dedicated manufacturing facility, and the product line managers are evaluated based on the product line’s
|
Aluminum
|
Vinyl
|
||||
|---|---|---|---|---|---|
|
Sales
|
$4,800,000 | $4,200,000 | |||
|
Variable costs
|
2,304,000 | 2,355,000 | |||
|
Direct fixed costs
|
1,728,000 | 1,530,000 | |||
|
Average assets
|
3,200,000 | 1,500,000 |
QUESTION
Calculate return on investment for each product line. (Round ROI to 2 decimal places, e.g. 5.12%.)
|
Aluminum
|
Vinyl
|
||
|---|---|---|---|
|
ROI
|
enter percentages rounded to 2 decimal places % | enter percentages rounded to 2 decimal places % |
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