Flamengo Co is a sporting goods manufacturing. Its basketball division had an ROI of 15% in 2020. Which of the following is not an advantage of ROI?
Q: Ivanhoe Company had $177,900 of net income in 2024 when the unit selling price was $154, the unit…
A: The objective of the question is to calculate the number of units sold by Ivanhoe Company in 2024.…
Q: I have found the variable portion (51.9%) but don't understand how to get the fixed portion in…
A: One of the costing strategies used in accounting to distinguish between fixed and variable costs is…
Q: Use the following information about Rat Race Home Security, Inc. to answer the questions: Average…
A: Degree of Financial leverage is calculated as operating income divided by earnings before taxes.
Q: Assume that you are the president of your compar year-end bonus according to the amount of net ine…
A: The cost flow assumption behind the first in, first out (FIFO) approach of inventory valuation is…
Q: Assume that you are the president of your company and paid a year-end bonus according to the amount…
A: Given: The president of the company paid an year-end bonus as per the net income.
Q: MBI Incorporated had sales of $35 million for fiscal 2022. The company's gross profit ratio for that…
A: Calculation: a. Percentage of gross profit is given which is 26%, therefore: Gross Profit = Sales…
Q: The Crusty Pie Co., which specializes in apple turnovers, has a return on sales higher than the…
A: The ROA can be calculated is as follows: Where, ROA = Return on Asset ROS = Return on Sales ATR =…
Q: Required Information Benchmark Assignment - Coca-Cola Co. & Pepsico Inc. You will need to use the…
A: Formulas,Margin = (Net Income / Net Revenue) x 100Asset Turnover = Net Revenue / Average AssetsROI =…
Q: A company has three investment alternatives. The alternatives have similar economic lives. The…
A: Return on investment represents the income earned due to the amount invested by the company. It is…
Q: Assume that you are the president of your company and paid a year-end bonus according to the amount…
A: Inventory can be valued under any of three methods. They are 1.FIFO 2. LIFO 3.Weighted average…
Q: Consider the following information: ROI = 18.0%, Assets = $30,000, and Sales = $45,000. Use the…
A: Profit margin is computed by dividing the income from operations by the sales and then multiplying…
Q: A company produces and sells a product. The company has found that the costto produce x units of the…
A: The objective of the question is to find the number of units the company should produce and sell to…
Q: A product is currently reported on the balance sheet at a cost of $29. The selling price of the…
A: Net realizable value = sales price - cost to sell
Q: 20. A relatively young company has high operating expenses (as a % of sales) relative to the…
A: Operating expenses are those directly or indirectly incurred during the production of goods in the…
Q: Cullumber Company had $172,300 of net income in 2024 when the unit selling price was $154, the unit…
A: Lets understand the basics.Number of units sold = (Fixed expense + Net income)/Contribution margin…
Q: How would overall corporate profits be affected if it sells 4,000 units to the Computer Division at…
A: Transfer pricing methods are those methods which are used for setting prices for transfer of product…
Q: Assuming that "Cost of Revenue" is the only variable cost and using the previously calculated…
A: The margin of safety refers to the excess amount of sales made over and above the breakeven sales.…
Q: Refer again to the data in (2) above. The president feels that the company must raise the selling…
A: Selling price is the rate in terms of money at which units produced are sold to the customers.
Q: How would overall corporate profits be affected if it sells 4,000 units to the Computer Division at…
A: Transfer pricing methodology is that methodology, which helps in calculation of prices at which…
Q: equirement 1. If SnowDreams cannot reduce its costs, what profit will it earn? State your answer…
A: Income statement has been prepared in the current case, where concept of variable costing has been…
Q: A brand had a 20% dollar share at 12/31/20 and a 18% dollar share at 12/31/21. Additionally, the…
A: Unit velocity is a metric used to measure the rate of sales growth per unit of production. It…
Q: Required: 1. Compute the Office Products Division's ROI for this year. 2. Compute the Office…
A: Return on investment (ROI) is a financial ratio calculated to show the percentage of benefit an…
Q: A corporation that is a single product firm is predicting that a price increase next year will cause…
A: The company can decide to increase the sales price. The increase in sales price lower the demand for…
Q: Pharoah Corp's sales slumped badly in 2022. For the first time in its history, it operated at a…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is One of the Important Cost…
Q: Blaster, Inc. recently conducted a least-squares regression analysis to predict selling expenses.…
A: equation: Y = 339,000 + 8.30X Here the variable X represents the number of units sold And total…
Q: Required Information [The following information applies to the questions displayed below.] Megamart…
A: Return on investment (ROI) is calculated by dividing net operating income by average operating…
Q: question number 4 and number 5 was not answered? 4. How much must your organization have in…
A: Sales dollars to earn desired profit is the estimate of sales amount to generate the required net…
Q: Earl Massey, director of marketing, wants to reduce the selling price of his company’s products by…
A: 1. The potential impact on other products in the company's lineup - if the selling price of one…
Q: Question based on modified problems 3.3 from the reference text [Flynn (2009)] from page 78 of the…
A: SOLUTION FORMULAS 1- BREAK EVEN POINT (IN SALES) = FIXED COST / PV RATIO. 2- MARGINAL OF SAFETY…
Q: , door-to-door solution for residential and commercial removals. As the market for removal services…
A: Operational income is a financial ratio that measures after operating expenses, which are the costs…
Q: Calculate gross profit, cost of goods sold, and selling price MBI Inc, had sales of $900 million for…
A: Gross profit is the difference between total sales and cost of goods sold by the business.The…
Q: Internal production supervisors of a company’s product line would be MOST likely to ask which of the…
A: The role of an internal production supervisor is crucial for maintaining the smooth operation of a…
Q: Which of the following statements is correct?
A: Cost of Goods Sold: It refers to the cost of production of the goods sold by the company. Such…
Q: Use the following information about Rat Race Home Security, Inc. to answer the questions: Average…
A: The change in earning per share can be calculated with the help of degree of financial leverage…
Q: Assume you are running a retail operation. You calculated weighted sales to be $225.00 per shopping…
A: CVP (cost-volume-profit) analysis is done to determine the break even level of the firm. Break even…
Q: If a company has three lots of products for sale, purchase 1 (earliest) for $17, purchase 2 (middle)…
A: Deflationary cost pattern means where prices are falling continuosly.
Q: A hardware company has a linear total cost function and has determined that it has a total cost of…
A: (a) Revenue = total units sold * price per unit
Q: Matthews Produce harvests and sells Florida oranges. Matthews has hired you to determine its…
A: The formula to compute return on investment (ROI) based on the net book value (NBV) as follows:
Q: Analyze the influence of factors on the level of return on sales (ROS). Choose the proper method of…
A: Return on sales or gross profit margin percentage is a profitability ratio used to compute the…
Q: Complete this question by entering your answers in the tabs below. Required A Required B Assume that…
A: ROI, simply return on investment, seems to be a frequently used metric for calculating the amount of…
Q: If a company has three lots of products for sale, purchase 1 (earliest) for $17, purchase 2…
A: The cost pattern represents the trend of the cost price of the products.
Q: A firm currently has extra warehouse space that it is renting out to a 3rd party for $10,000 a…
A: Capital budgeting is a financial process of evaluating a capital project's profitability and…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- If National Co. treats the AB Division as an investment center for performance measurement purposes, what is the before-tax ROI for last year? 22.54% 16.67% 19.79% 34.78%Wilderness Products, Incorporated, has designed a self-inflating sleeping pad for use by backpackers and campers. The following information is available about the new product: a. An investment of $1,350,000 will be necessary to carry inventories and accounts receivable and to purchase some new equipment needed in the manufacturing process. The company's required rate of return is 24% on all investments. b. A standard cost card has been prepared for the sleeping pad, as shown below: Direct materials Direct labor Manufacturing overhead (20% variable) Total standard cost per pad Standard Quantity or Hours 4.0 yards 2.4 hours 2.4 hours Standard Price or Rate $2.70 per yard $8.00 per hour $12.50 per hour Standard Cost $10.80 19.20 30.00 $ 60.00 c. The only variable selling and administrative expense will be a sales commission of $9 per pad. The fixed selling and administrative expenses will be $732,000 per year. d. Because the company manufactures many products, no more than 38,400 direct…1.) refer to the original data. Compute the company's margin of safety in both dollar and percentage terms ? 2.) what is the company's cm ratio? If he company can sell more units thereby increasing sales by $84000 per month and there is no change in fixed expense, by how much would you expect monthly net operating income to increase?
- Mindspin Labs Inc. is a manufacturing firm that has experienced strong competition in its traditional business. Management is considering joining the trend to the "service economy" by eliminating its manufacturing operations and concentrating on providing specialized maintenance services to other manufacturers. Management of Mindspin Labs has had a target ROI of 16% on an asset base that has averaged $8 million. To achieve this ROI, average total asset turnover of 2 was required. If the company shifts its operations from manufacturing to providing maintenance services, it is estimated that average total assets will decrease to $5 million.Required: Calculate net income, margin, and sales required for Mindspin Labs to achieve its target ROI as a manufacturing firm. Assume that the average margin of maintenance service firms is 2.50%, and that the average ROI for such firms is also 17%. Calculate the net income, sales, and total asset turnover that Mindspin Labs will have if the change…Company A's gross profit rate last year was 32.0% and this year it is 28.4%. Which of the following would not be a possible cause for this decline in the gross profit rate? O Company A's average margin between unit selling price and inventory unit cost is decreasing. O Company A may have seen a decline in total gross profit while maintaining net sales. Company A may have begun selling products with a higher markup. O Company A must have paid higher prices to suppliers without passing these costs on to customers.The new chief executive officer (CEO) of Richard Manufacturing has asked for a variety of information about the operations of the firm from last year. The CEO is given the following information, but with some data missing: (Click the icon to view the variety of operations information.) Read the requirements, Requirement 1. Find (a) total sales revenue, (b) selling price, (c) rate of return on investment, and (d) markup percentage on full cost for this product. (a) The total sales revenue is (Round your answer to the nearest cent.) (b) The selling price per unit is (Round the retum on investment to the nearest whole percent, X%.) (c) The rate of return on investment is (d) Calculate the markup percentage on full cost for this product. (Round your intermediary calculations to the nearest cent and the markup to the nearest hundredth percent XXX%) The markup percentage on full cost for this product is Requirement 2. The new CEO has a plan to reduce fixed costs by $200,000 and variable…
- CarniTrin is a manufacturer of Carnival costumes in a highly competitive market. The company's management team is seeking guidance on the use of financial performance measures to identify the key drivers of the company's financial performance and develop a strategy to improve it. The following data relate to the company for the year 2022: In its clothing division, the company has $6,000,000 invested in assets. After-tax operating income from sales of clothing in 2022 is $900,000. Income for the clothing division has grown steadily over the last few years. The cosmetics division has $14,000,000 invested in assets and an after-tax operating income in 2022 of $1,900,000. The weighted-average cost of capital for CarniTrin is 10% and the 2021’s after-tax return on investment for each division was 15%. The general manager of CarniTrin has asserted that in the future, managers should have their compensation structure aligned with their performance measures with no fixed salaries. However,…Bear Paints is a national paint manufacturer and retailer. (Click the icon to view additional information.) Assume that management has specified a 20% target rate of return. Read the requirements. Requirement 1. Calculate each division's ROI. First enter the formula, then calculate the ROI for each division. (Enter the ROI as a percent rounded to the nearest hundredth of a percentage, X.XX%.) Paint Stores Paint Stores Consumer Requirement 2. Calculate each division's sales margin. Interpret your results. Enter the formula, then calculate the sales margin for each division. (Enter the sales margin as a percent rounded to the nearest hundredth of a percentage, X.XX%.) Sales margin Consumer Interpret your results. The Paint Stores Consumer + The Paint Stores + Consumer + Division is more profitable on each dollar of sales. Requirement 3. Calculate each division's capital turnover. Interpret your results. First enter the formula, then calculate the capital turnover for each division.…Both Apple and Google sell electronic devices, and each of these companies has a different product mix. Assume the following data are available for both companies. ($ millions) Sales Variable costs Fixed costs Apple $ 260,174 122,034 82,884 Required: 1. Compute income for each company. 2. Compute the degree of operating leverage for each company. 3. If unit sales decline, which company would experience the larger decline in income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Google $ 161,857 86,302 41,212 Income Compute income for each company. (Enter your answers in million of dollars.) Apple Google
- You are an industry analyst that specializes in an industry where the market inverse demand is P = 100 - 2Q. The external marginal cost of producing the product is MCExternal = 8Q, and the internal cost is MCInternal = 18Q.Instructions: Enter your responses rounded to the nearest two decimal places.a. What is the socially efficient level of output? unitsb. Given these costs and market demand, how much output would a competitive industry produce? unitsc. Given these costs and market demand, how much output would a monopolist produce? unitsd. Which of the following are actions the government could take to induce firms in this industry to produce the socially efficient level of output.Instructions: For correct answers place a check mark. check all that apply Nonrival consumptionunanswered Pollution taxesunanswered Pollution permitsunanswered(15) The Central Division of Chemical Company has a return on investment of 22% and an investment turnover of 1.63. What is the profit margin?Solano Company has sales of $520,000, cost of goods sold of $380,000, other operating expenses of $51,000, average invested assets of $1,650,000, and a hurdle rate of 8 percent. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario’s impact on Solano’s ROI and residual income. (Note: Treat each scenario independently.)a. Company sales and cost of goods sold increase by 40 percent. What is the residual income? Thanks