Jaymes Corporation produces high-performance rotors. It expects to produce 57,000 rotors in the coming year. It has invested$11,780,000 to produce rotors. The company has a required return on investment of 15%. What is its ROI per unit?ROI per unit $

RETURN ON INVESTMENTReturn on investment is one of the profitability ratios which shows how much…

Answered: Jaymes Corporation produces…

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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Golden Goodness (GG) has an investment center that had the following data: Operating Income $28,000 Sales $350,000 Invested assets $175,000 PMB has set a minimum acceptable rate of return at 14%. Using the information, answer the following questions. You must include what type of number it is (%, $, etc.) What is the profit margin? What is the investment turnover? What is the return on investment?
The company had an overall return on investment (ROI) of 15% this year (considering all divisions). Next year the Office Products Division has an opportunity to add a new product line that would require an additional investment that would increase average operating assets by $1,000,000. The cost and revenue characteristics of the new product line per year would be: Sales $2,000,000 Variable expenses 60% of sales Fixed expenses $640,000 Required: 1. Compute the Office Products Division's margin, turnover, and ROI for this year. 2. Compute the Office Products Division's margin, turnover, and ROI for the new product line by itself. 3. Compute the Office Products Division's margin, turnover, and ROI for next year assuming that it performs the same as this year and adds the new product line. 4. If you were in Dell Havasi's position, would you accept or reject the new product line? Explain. 5. Why do you suppose headquarters is anxious for the Office Products Division to add the new product…
Big Chill, Inc. sells portable dehumidifier units at $193. Unit variable costs are $110. Fixed costs are $4,175,000. Management has set a profit objective of 15.1% return on sales. Calculate the sales volume in dollars that will provide a 15.1% return on sales. Round your answer to the nearest dollar .
Please help me with show all calculation thanku
Am. 112.
Am. 112.
(b) The cost of materials is expected to rise by 20%, while total fixed costs are expected to rise by RM13,000 per year:Calculate the number of units that must be sold for the company's net profit to be maintained. Assume that the rest of the data is unchanged. Determine a new break-even point and margin of safety in bottles if the selling price change to RM 6 per packet. Assume that all other variables remain constant. please provide calculations for each of them.
Hoffman Ceramics, a division of Fielding Corporation, has an operating income of $64,000 and total assets of $400,000. The required rate of return for the company is 10%. The company is evaluating whether it should use return on investment (ROI) or residual income (RI) as a measurement of performance for its division managers. The manager of Hoffman Ceramics has the opportunity to undertake a new project that will require an investment of $100,000. This investment would earn $14,000 for the company. Read the requirements. From the standpoint of Fielding Corporation this investment is is more than Fielding's required rate of return. desirable. The ROI of the investment opportunity Requirement 4. What would the residual income (RI) be for Hoffman Ceramics if this investment opportunity were to be undertaken? Would the manager of the Hoffman Ceramics division want to make this investment if she were evaluated based on RI? Why or why not? First determine the formula to calculate the RI.…
Jaymes Corporation produces high-performance rotors. It expects to produce 56,000 rotors in the coming year. It has invested $10,150,000 to produce rotors. The company has a required return on investment of 16%. What is its ROI per unit? ROI per unit $
Golden Goodness (GG) has an investment center that had the following data: Operating Income $28,000 Sales $350,000 Invested assets $175,000 PMB has set a minimum acceptable rate of return at 14%. Using the information, answer the following questions. You must include what type of number it is (%, $, etc.) Part A: What is the profit margin? Part B: What is the investment turnover? Part C: What is the return on investment? Part D: What is the residual income? Part E: Explain each of the calculations you just performed (a-d).
Macquarium Inc. provides computer-related services to its dients. Its two primary services are Web page design (WPD) and Internet consulting services (ICS). Assume that Macquarium's management expects to earn a 35% annual return on the assets invested. Macquarium has invested $5.4 million since its opening. The annual costs for the coming year are expected to be as follows: Variable Costs Fixed Costs Consulting support Sales and administration $225,000 $1,575,000 135,000 765,000 The two services expend about equal costs per hour, and the predicted hours for the coming year are 15,000 for WPD and 25,000 for ICS. Required a. If markup is based on variable costs, how much revenue must each service generate to provide the profit expected by corporate headquarters? What is the anticipated revenue per hour for each service? Hint: Start by determining the markup rate. WPD $ Total Revenue Reveue per Hour ICS S b. If the markup is based on total costs, how much revenue must each service…

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Jaymes Corporation produces high-performance rotors. It expects to produce 57,000 rotors in the coming year. It has invested $11,780,000 to produce rotors. The company has a required return on investment of 15%. What is its ROI per unit? Ter ROI per unit $