Selected operating data for two divisions of Outback Brewing, Limited, of Australia are given below:SalesAverage operating assetsNet operating incomeProperty, plant, and equipment (net)Required:1. Compute each division's margin, turnover, and return on investment (ROI).2. Which divisional manager is doing the better job?Queensland divisionNew South Wales divisionQueensland$928,000$ 580,000$ 74,240$ 243,000Complete this question by entering your answers in the tabs below.MarginDivisionRequired 1 Required 2Compute each division's margin, turnover, and return on investment (ROI).Note: Round your answers to 2 decimal places.%%New South Wales$1,479,000$493,000$73,950$ 193,000TurnoverRequired 1ROIRequired 2 > Selected operating data for two divisions of Outback Brewing, Limited, of Australia are given below:Queensland$928,000$ 580,000DivisionSalesAverage operating assetsNet operating incomeProperty, plant, and equipment (net)Required:1. Compute each division's margin, turnover, and return on investment (ROI).2. Which divisional manager is doing the better job?New South Wales division$ 74,240$ 243,000Required 1 Required 2Which divisional manager is doing the better job?OQueensland divisionComplete this question by entering your answers in the tabs below.New South Wales$ 1,479,000$ 493,000$73,950$ 193,000< Required 1Required 2 >

MARGIN Margin is the Ratio Between Net Operating Income & Net Sales.Formula = (Net operating…

Division Queensland $928,000 $ 580,000 $ 74,240 $ 243,000 Required 1 Required 2 New South Wales $ 1,479,000 $493,000 $73,950 $ 193,000 Sales Average operating assets Net operating income Property, plant, and equipment (net) Required: 1. Compute each division's margin, turnover, and return on investment (ROI). 2. Which divisional manager is doing the better job? Complete this question by entering your answers in the tabs below. Compute each division's margin, turnover, and return on investment (ROI). Note: Round your answers to 2 decimal places.

Division Queensland $928,000 $ 580,000 $ 74,240 $ 243,000 Required 1 Required 2 New South Wales $ 1,479,000 $493,000 $73,950 $ 193,000 Sales Average operating assets Net operating income Property, plant, and equipment (net) Required: 1. Compute each division's margin, turnover, and return on investment (ROI). 2. Which divisional manager is doing the better job? Complete this question by entering your answers in the tabs below. Compute each division's margin, turnover, and return on investment (ROI). Note: Round your answers to 2 decimal places.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Exercise 15-19 (Algo) Investment center analysis; ROI and residual income LO 15-9 The Northern Division of Allied Incorporated has operating income of $18,500 on sales revenue of $166,000. Divisional operating assets are $80,200, and management of Allied has determined that a minimum return of 13% should be expected from all investments. Required: a. Using the DuPont model, calculate the Northern Division's margin, turnover, and ROI. b. Calculate the Northern Division's residual income. Complete this question by entering your answers in the tabs below. Required A Required B Using the DuPont model, calculate the Northern Division's margin, turnover, and ROI. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Margin Turnover ROI Northern Division % turns %
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Return on Investment The income from operations and the amount of invested assets in each division of Beck Industries are as follows: Income from Invested Operations ASsets Retail Division $62,700 $330,000 Commercial 77,000 350,000 Division Internet Division 490,000 73,500 a. Compute the return on investment for each division. (Round to the nearest whole number.) Division Percent Retail Division % Commercial Division % Internet Division b. Which division is the most profitable per dollar invested? Commercial Division Internet Division Retail Division
3. If management desires a minimum acceptable return on investment of 10%, determine the residual income for each division.
Return on investment The operating income and the amount of invested assets in each division of Conley Industries are as follows: Operating Income Invested Assets Retail Division $9,600,000 $40,000,000 Commercial Division 12,100,000 55,000,000 Internet Division 6,480,000 36,000,000 a. Compute the return on investment for each division. Division Percent Retail Division fill in the blank 1 % Commercial Division fill in the blank 2 % Internet Division fill in the blank 3 % b. Which division is the most profitable per dollar invested?
Return on investment The operating income and the amount of invested assets in each division of Conley Industries are as follows: Operating Income Invested Assets Retail Division $72,600 $330,000 Commercial Division 117,600 490,000 Internet Division 224,100 830,000 a. Compute the return on investment for each division. (Round to the nearest whole percentage.) Division Percent Retail Division % Commercial Division % Internet Division b. Which division is the most profitable per dollar invested?
Return on investment The income from operations and the amount of invested assets in each division of Beck Industries are as follows: Income from Operations Invested Assets Retail Division $156,200 $710,000 Commercial Division 56,000 280,000 Internet Division 194,400 720,000 a. Compute the return on investment for each division. (Round to the nearest whole number.) Division Percent Retail Division fill in the blank 1 % Commercial Division fill in the blank 2 % Internet Division fill in the blank 3 % b. Which division is the most profitable per dollar invested?
Exercise 14-29 (Algo) Compute RI and ROI (LO 14-2, 3) The Custodial Division of Clark's Corporate Services (CCS) has assets of $1.2 million. During the past year, the division had profits of $240,000. CCS has a cost of capital of 7.5 percent. Ignore taxes. Required: a. Compute the divisional ROI for the Custodial Division. b. Compute the divisional RI for the Custodial Division. Complete this question by entering your answers in the tabs below. Required A Required B Compute the divisional ROI for the Custodial Division. Divisional ROI %