Division A's asset turnover (AT) is (rounded to two decimal places):
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Selected data from Division A of Green Company are as follows:
Sales | $ | 490,000 | |
Average investment | $ | 416,500 | |
Operating income | $ | 83,300 | |
Minimum |
16 | % | |
Division A's asset turnover (AT) is (rounded to two decimal places):
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- Selected sales and operating data for three divisions of different structural engineering firms are given below: Division C $ 25,450,000 $ 5,090,000 $636,250 12.50% Sales Average operating assets Net operating income Minimum required rate of return Division A $ 12,360,000 $ 3,090,000 $ 494,400 7.00% Required: 1. Compute each division's margin, turnover, and return on investment (ROI). 2. Compute each division's residual income (loss). 3. Assume each division is presented with an investment opportunity yielding a 8% rate of return. a. If performance is being measured by ROI, which division or divisions will accept the opportunity? b. If performance is being measured by residual income, which division or divisions will accept the opportunity? Division B $ 28,360,000 $ 7,090,000 $ 453,760 7.50% Complete this question by entering your answers in the tabs below. Division A Division B Division C Required 1 Required 2 Required 3A Required 3B Assume each division is presented with an…Central Division for Chemical Company has a rate of return on investment of 23% and an investment turnover of 2.31. What is the profit margin? Round the percentage to two decimal places.Residual Income The Commercial Division of Galena Company has operating income of $264,070 and assets of $549,000. The minimum acceptable return on assets is 13%. What is the residual income for the division?
- Kyle Corporation provides the following information for the Product Division and Service Division for the year. Product Division Service Division 420,000 $ 650,000 195,000 245,000 640,000 610,000 14.0% 14.0% Net sales Operating income Average total assets Target rate of return $ Requirement 1. Calculate the return on investment for each division. (Enter answers as a percent rounded to the nearest hundredth percent, X.XX%) The return on investment for the Product Division is The return on investment for the Service Division is Requirement 2. Which division has the highest ROI? % % Requirement 3. Calculate the residual income for each division. (Round answers to the nearest whole dollar.) The residual income for the Product Division is The residual income for the Service Division is Requirement 4. Which division has the highest residual income?The sales, income from operations, and invested assets for each division of Jackson Corporation are as follows: Sales Income from Operations Invested Assets Division E $4,000,000 $550,000 $2,400,000 Division F 4,800,000 760,000 2,500,000 Division G 7,000,000 860,000 2,800,000 (a) Using the expanded expression, determine the profit margin, investment turnover, and rate of return on investment for each division. Round answers to one decimal place. (b) Which Division is the most profitable per dollar invested? (a) (b)Blaser Division had $1,040,000 in invested assets, sales of $1,271,000, income from operations of $205,000, and a minimum acceptable return of 13%. The return on investment for Blaser Division is (round the percentage to one decimal place.)