4 Exercise 10-2 (Algo) Residual Income [LO10-2]Juniper Design Limited of Manchester, England, is a company specializing in providing design services to residential developers. Lastyear the company had net operating income of $490,000 on sales of $2,000,000. The company's average operating assets for theyear were $2,200,000 and its minimum required rate of return was 13%.Required:Compute the company's residual income for the year.Residual income

The net operating income earned in excess of the minimum return on operating assets invested is…

Answered: Juniper Design Limited of Manchester,…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 5BE: Residual income The Commercial Division of Galena Company has operating income of 12,680,000 and...

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Exercise 14-46 (Algo) Compare ROI Using Net Book and Gross Book Values (LO 14-2, 5) The Street Division of Labrosse Logistics just started operations. It purchased depreciable assets costing $40.0 million and having a four-year expected life, after which the assets can be salvaged for $8.0 million. In addition, the division has $40.0 million in assets that are not depreciable. After four years, the division will have $40.0 million available from these non depreciable assets. This means that the division has invested $80 million in assets with a salvage value of $48.0 million. Annual operating cash flows are $12.8 million. In computing ROI, this division uses beginning-of-year asset values in the denominator. Depreciation is computed on a straight-line basis, recognizing the salvage values noted. Ignore taxes. Required: a. & b. Compute ROI, using net book value and gross book value. Note: Enter your answers as a percentage rounded to 2 decimal place (i.e., 32.10). Year 1 Year 2 Year 3…
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Current Attempt in Progress Your Answer Bonita Industries had sales of $500000, variable costs of $580000, and direct fixed costs totaling $100000. The company's average operating assets total $980000 and its required return is 13%. What is the company's residual income? 4 $372600 $-307400 Correct Answer $452600 O $127400
Required information Problem 03.036 DEPENDENT MULTI-PART PROBLEM - ASSIGN ALL PARTS A process for producing the mosquito repellant Deet has an initial investment of $205,000 with annual costs of $55,000. Income is expected to be $90,000 per year. Problem 13.036.b: Calculate the breakeven point What is the annual breakeven production quantity for both payback periods if net profit, that is, income minus cost, is $10 per gallon? When i=0%, the annual breakeven production quantity is determined to be 3504 gallons per year. When 12%, the annual breakeven production quantity is determined to be 1914 gallons per year.
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Vishnu
Q.1 KrishnaGems Ltd has just installed Equip.-R at a cost of Rs 2,00,000. Themachine has a five yearlife with no residual value. The annual volume ofproduction is estimated at 1,50,000 units, which can be sold at Rs 6 per unit.Annual operating costs are estimated at Rs 2,00,000 (excludingdepreciation) at this output level. Fixed costs are estimated at Rs 3 per unitfor the same level of production. KrishnaGems Ltd has just come acrossanother model called Equip.-S capable of giving the same output at anannual operating cost of Rs 1,80,000 (exclusive of depreciation). There willbe no change in fixed costs. Capital cost of this machine is Rs 2,50,000 andthe estimated life is for 5 years with no residual value.The company has anoffer for sale of Equip.-R at Rs 1,00,000. The cost of dismantling andremoval will be Rs 30,000. As the company has not yet commencedoperations, it wants to sell Machine-R and purchase Equip.-S. Nine GemsLtd will be a zero-tax company, for seven years in view of…
Question 1 UEM Construction Sdn Bhd is considering investing in a new construction equipment costing RM150,000. Its life is expected to be four years and it will have no scrap value at the end of this period. The following details are given relating to the machinery's activities: i, Unit selling price is RM40.00 and unit variable costs of production are: RM Direct materials 6.00 Direct ļabour 3.80 Variable overheads 5.20 ii. Sales volume relating to production of the construction equipment is expected to be: Year Sales Volume (units) 1 2,100 2,200 2,500 2,600 2 3 4 iii. Fixed costs amount to RM12,000 per annum. One quarter of the fixed costs is cash flow related items. iv. The company anticipates a cost of capital to be 10%.
P10-8 Break-even analysis The production of a new product required Zion Manufacturing Co. to lease additional plant facilities. Based on studies, the following data have been made available: Estimated annual sales—24,000 units Amount Per unit Estimated costs: Materials .......................................... $ 96,000 $4.00 Direct labor........................................ 14,400 0.60 Factory overhead ................................. 24,000 1.00 Administrative expense........................... 28,800 1.20 Total............................................. $163,200 $6.80 Selling expenses are expected to be 5% of sales, and net income is to amount to $2.00 per unit. Required: 1. Calculate the selling price per unit. (Hint: Let “X” equal the sell- ing price and express selling expense as a percentage of “X.”) 2. Prepare an absorption costing income statement for the year ended December 31, 2016.…
Exercise 11-1 (Algo) Compute the Return on Investment (ROI) [LO11-1] Alyeska Services Company, a division of a major oll company, provides various services to the operators of the North Slope oll field in Alaska. Data concerning the most recent year appear below: Sales Net operating income Average operating assets Required: 1. Compute the margin. Note: Round your answer to 2 decimal places. 2. Compute the turnover. $ 17,400,000 $ 4,700,000 $ 35,200,000 Note: Round your answer to 2 decimal places. 3. Compute the return on Investment (ROI). Note: Round your Intermediate calculations and final answer to 2 decimal places. 1. Margin 2. Turnover 3. ROI %
Pls, answer the ff. requirements

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