For its three investment centers, Martinez Company accumulates the following data.|IISales$1,920,000$3,840,000 $3,840,000Controllable margin1,392,0001,996,8003,552,000Average operating assets 4,800,0007,680,0009,600,000Compute the return on investment (ROI) for each center.Return on investment|do%II%III%do

To compute the return on investment (ROI) for each investment center, we can use the following…

Answered: For its three investment centers,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

For its three investment centers, Monty Company accumulates the following data. 11 $1,960,000 $3,920,000 Controllable margin 1,470,000 2,116,800 Average operating assets 4,900,000 7,840.000 Sales Compute the return on investment (ROI) for each center. Return on investment Madla % ||| $3,920,000 3,724,000 9,800,000 % 111
For its three investment centers, Flint Company accumulates the following data: || III Sales $2,360,000 $4,720,000 $4,720,000 Controllable margin 1,770,000 2,548,800 4,484,000 Average operating assets 5,900,000 9,440,000 11,800,000 Compute the return on investment (ROI) for each center. The return on investment % % III %
For its three investment centers, Indigo Company accumulates the following data: Sales Controllable margin Average operating assets 1 $2,400,000 $4,800,000 $4,800,000 1,560,000 2.208,000 6,000,000 9,600,000 The return on investment i 11 Compute the return on investment (ROI) for each center. % 111 4,080,000 12,000,000 HE %
Required information [The following information applies to the questions displayed below] The following Information is provided for each Investment Center Investment Center Cameras Phones Computers Compute return on Investment for each Investment center. Which center performed the best based on return on investment? Return on Performance Investment Based on ROI Income $6,500,000 2,652,000 850,000 Complete this question by entering your answers in the tabs below. Inve Average Assets $ 29,300,000 22,100,000 14,800,000 Compute return on investment for each investment center. (Round your final answer to 1 decimal place.) Return on Investment Cameras Phones Computers Income Average Accato $ 6,500,000 $ 29,300,000 2,652,000 22,100,000 850,000 14,800,000
For its three investment centers, Gerrard Company accumulates the following data: I II III Sales $2,062,000 $3,914,000 $3,905,000 Controllable margin 848,640 2,161,620 4,103,120 Average operating assets 4,992,000 8,006,000 12,068,000 Compute the return on investment (ROI) for each center. I II III The return on investment % % % eTextbook and Media
For its three investment centres, Stahl Company accumulates the following data: Centre I Centre il Centre III Sales $1,996,000 $4,043,000 $3,962,000 Controllable margin 785,760 2,663,760 4,372,200 Average operating assets 4,911,000 8,072,000 12,145,000 Calculate the return on investment (ROI) for each centre. The return on investment Centre I % Centre II % Centre III
Megamart provides the following information on its two investment centers. Investment Center Electronics Sporting goods Sales $ 63,460,000 19,050,000 Income $ 3,173,000 2,286,000 Average Assets $ 16,700,000 12,700,000 Exercise 22-10 (Algo) Computing return on investment and residual income; investing decision LO A1 1. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? 2. Assume a target income of 12% of average assets. Compute residual income for each center. Which center generated the most residual income? 3. Assume the Electronics center is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? The target return is 12%.
For its three investment centers, Gerrard Company accumulates the following data: I II III Sales $2,000,000 $4,000,000 $4,000,000 Controllable margin 1,400,000 2,000,000 3,600,000 Average operating assets 5,000,000 8,000,000 10,000,000 Compute the return on investment (ROI) for each center. I II III The return on investment enter percentages % enter percentages % enter percentages %
For its three investment centers, Blue Spruce Company accumulates the following data: II II Sales $2,520,000 $5,040,000 $5,040,000 Controllable margin 1,827,000 2,620,800 4,662,000 Average operating assets 6,300,000 10,080,000 12,600,000 Compute the return on investment (ROI) for each center. II II The return on % % investment
Use the following information for the Quick Study below. (Algo) [The following information applies to the questions displayed below.] The following information is provided for each Investment Center. Investment Center Cameras Phones Computers Income $ 6,400,000 2,145,000 900,000 QS 22-12 (Algo) Computing return on investment LO A1 Compute return on investment for each investment center. Which center performed the best based on return on investment? Investment Center Average Assets $ 29,600,000 16,500,000 15,200,000 Complete this question by entering your answers in the tabs below. Cameras Phones Computers Performance Return on Investment Based on ROI Compute return on investment for each investment center. (Round your final answer to 1 decimal place.) Average Assets $ 29,600,000 16,500,000 15,200,000 Answer is complete but not entirely correct. Income $ 6,400,000 2,145,000 900,000 Return on Investment 2.2 X % 0.2 X % 5.9 %
Required Information [The following Information applies to the questions displayed below.] Megamart provides the following Information on its two Investment centers. Investment Center Electronics Sporting goods Sales $ 63,460,000 19,050,000 1. Compute return on Investment for each center. Using return on investment, which center is most efficient at using assets to generate Income? 2. Assume a target Income of 12% of average assets. Compute residual income for each center. Which center generated the most residual Income? 3. Assume the Electronics center is presented with a new Investment opportunity that will yield a 14% return on Investment. Should the new Investment opportunity be accepted? The target return is 12%. Complete this question by entering your answers in the tabs below. Numerator: Required 1 Required 2 Required 3 Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? Income $ 3,173,000…
For its three investment centres, National Inc. accumulates the following data: Centre I Centre II Centre III Sales $2,000,000 $4,000,000 $4,000,000 Operating income 1,300,000 1,840,000 2,880,000 Average Operating Assets 5,000,000 8,000,000 12,000,000 Minimum required return 15% 20% 25% 1.) What is the return on investment (ROI) for Centre I? a. 20% b. 23% c. 24% d. 26% 2.)The residual income (RI) for Centre III is a. $150,000 b. $550,000 c. $240,000 d. -$120,000 3.)The ranking of the centres based on return on investment (ROI) with the best performer listed first is as follows a. Centre I, Centre II, Centre III b. Centre I, Centre III, Centre II c. Centre III, Centre II, Centre I d. Centre II, centre III, Centre I 4.)What is the return on investment (ROI) for Centre II? a. 20% b. 23% c. 24% d. 26%

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS