Knowledge Check East Division of Blue Spruce Anchors provided the following information: Contribution margin Controllable margin Average operating assets Minimum rate of return $890,000 $395,900 $2,140,000 9% Compute the return on investment and the residual income. (Round return on investment answer to two decimal places (e.g
Q: Determining missing items in return and residual income computations Data are presented in the…
A: Formula: Return on investment = Operating income / Invested assets Minimum return on investment =…
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A: Lets understand the basics.Return on investment ratio shows how much segment net income is generated…
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A: Return on Investment: It is a measure of management effectiveness in utilizing assets at its…
Q: Compute the residual income for each division. North Division West Division South Division SA $…
A: RETURN ON INVESTMENTReturn on investment is one of the profitability ratios which shows how much…
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A: Ratio analysis s helps to analyze the financial statements of the company. Management can make…
Q: Presented here is selected information for three regional divisions of Pronghorn Comp Contribution…
A: Return on investment can be calculated based on controllable margin by average operating assets. It…
Q: [The following information applies to the questions displayed below.] The following information is…
A: Residual income is revenue received after the job that generates income has been completed.…
Q: 2. Using the DuPont formula for return on investment, determine the profit margin, investment…
A: Business Division Consumer Division (2.) Average Invested Assets $3,42,40,000…
Q: Ryan Division has the following results for the year: Revenues $470,000 Net…
A: Residual Income: Residual income is the income that a company earns after paying off all the…
Q: Comparative data on three companies operating in the same industry follow. The minimum required ROI…
A: The business entities or lenders determine financial ratios to compare different companies' outcomes…
Q: Division A's asset turnover (AT) is (rounded to two decimal places):
A: Given that , Sales = $490000 Average investment = $416500 Operating income = $ 83300
Q: Classico's Pizza, a chain of pizza parlors, views each branch location as an investment center. The…
A: Solution : Sales = $3,600,000 Variable Expenses = $2,970,000 Fixed cost = $270,000
Q: Blue Spruce accumulates the following data for its North Division, an investment center, for the…
A: The return on investment (ROI) is considered a meaningful evaluation parameter to measure the…
Q: Mitsu Division has the following results for the year: Revenues $1,080,000…
A: Residual income is a financial performance metric that measures the net income a company or business…
Q: Martinez, Inc. reports the following financial information for its sports clothing segment. Average…
A: Return on Investment (ROI)ROI formula: ROI = (Controllable Margin / Average Operating Assets) x…
Q: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's…
A: ROI means return on investment.. It is the percentage return earned by the entity on the operating…
Q: Warren Company has a hurdle rate of 11.2%. a. Calculate the return on investment for each division.…
A: a)Calculation of return on investments as follows under:-
Q: Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama.…
A: RETURN ON INVESTMENTReturn on investment is one of the profitability ratios which shows how much…
Q: For its three investment centres, Stahl Company accumulates the following data: Centre I Centre il…
A: Return on investment is one the profitability ratio which is used to evaluate investment efficiency.…
Q: Assume a company reported the following results: Sales $ 400,000 Variable expenses 260,000…
A: Formula: Margin = ( Contribution margin / Sales ) x 100
Q: The following information is provided for each Investment Center. Investment Center Cameras Income $…
A: Thus,a) Residual Income for Cameras = $1,804,000b) Residual Income for Phones = $0c) Residual Income…
Q: operating assets ting income required rate of return. Division A $ 12,600,000 $ 3,150,000 $ 516,600…
A: Return on investment (ROI) is a performance statistic used to evaluate the efficiency or…
Q: residual income for the division
A: Residual income = Income from operations - (Assets * Minimum acceptable return on assets)
Q: Comparative data on three companies operating in the same industry follow. The minimum required ROI…
A: 1. Ratios are calculated using following formulas -Using the Formulas:Profit Margin Net Operating…
Q: Use the following information for the Problems below: The following data pertain to three divisions…
A: ROI means return on investment. It is the percentage return earned by the entity on the operating…
Q: The Bottlebrush Division has income from operations of $90,300, invested assets of $258,000, and…
A: a. Profit Margin Operating Income / Sales b. Investment Turnover Sales / Invested Assets…
Q: elected sales and operating data for three divisions of different structural engineering firms are…
A: Solution : Return on investment is percentage return earned on average operating assets of the…
Q: The Western Division of Claremont Company had net operating income of $144,000 and average invested…
A: Return on investment :— It is calculated by dividing net operating income by average total operating…
Q: Presented below is information related to the Southern Division of Lumber, Inc. Contribution margin…
A: Return on investment can be calculated by dividing controllable margin with average operating assets…
Q: The following information is provided for each Investment Center. Investment Center Cameras Phones…
A: Return on investment is used for finding out how efficiently the investment was put to use. The…
Q: The following information is provided for each Investment Center. Investment Center Cameras Phones…
A: Residual income is the difference between income and target return on investment.. Target return on…
Q: Selected sales and operating data for three divisions of different structural engineering firms are…
A: Margin :— It is the ratio of net operating income and sales. Turnover :— It is the ratio of sales…
Q: The sales, income from operations, and invested assets for each division of Wren Company are as…
A: Residual Income = Income from Operations - Invested Assets x Minimum rate of return Residual Income…
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A: The answer is in the explanation section below.Explanation:Electronics Center:1. Income:…
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A: Financial info about a person's or bank's monetary transactions. Lenders use this information to…
Q: Sales Operating Income Invested Assets Division C $4,000,000 $410,000 $3,500,000 Division D…
A: Residual income can be calculated from the cost of operating assets.
Q: For its three investment centers, Blue Spruce Company accumulates the following data: II II Sales…
A: Solution The calculation of ROI is shown below ROI = (Controllable Margin / Average Operating…
Q: Return on investment is often expressed as follows: Controllable margin Average operating assets…
A: Ratios are very helpful in decision making process in the business. It makes use of financial…
Q: Presented below is selected information for three regional divisions of Medina Company. Divisions…
A: The rate of return represents the percentage of return the company earns by the investment made by…
Q: Investment Center Sales Net income Average invested assets Profit margin Investment turnover Return…
A: Return on investment helps in measuring the performance by evaluating the profit and efficiency of…
Q: Presented below is information related to the Annandale Division of Lumber, Inc. Contribution margin…
A: Residual Income - Residual Income is the income continue to be receive after completion of work.…
Q: Required information [The following information applies to the questions displayed below.] The…
A: Residual income is the difference between income and target return on investment. Target return on…
Q: Required information [The following information applies to the questions displayed below.] The…
A: Residual income is the difference between net operating income and target return on investment. Net…
Q: ROI is effective because it takes into consideration the three factors under the control of an…
A: All questions are done based on formulas given in question
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- The following information is provided for each division. Net Income $6,100,000 2,758,000 1,000,000 Investment Center Cameras and camcorders Phones and communications Computers and accessories Assume a target income of 14% of average invested assets. Required: Compute residual income for each division. (Enter losses with a minus sign.) Target Income Targeted return Target income Residual Income Residual income (loss) Cameras and Camcorders Cameras and Camcorders Average Assets $ 25,700,000 19,700,000 10,400,000 % Phones and Communications Phones and Communications % Computers and Accessories Computers and Accessories %The Western Division of Claremont Company had net operating income of $148,000 and average invested assets of $558,000. Claremont has a required rate of return of 13.00 percent. Western has an opportunity to increase operating income by $40,000 with a $85,000 investment in assets. Compute Western Division's return on investment and residual income currently and if it undertakes the project. Note: Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%). Round your Residual Income (Loss) answers to the nearest whole dollar. Return on Investment (ROI) Residual Income (Loss) Current Proposed Project %For its three investment centers, Ayayai Company accumulates the following data: Sales Controllable margin Average operating assets $2,480,000 1,736,000 6,200,000 The return on investment 11 $4,960,000 2.480,000 9,920.000 Compute the return on investment (ROI) for each center. 25 % 111 $4,960,000 4,464,000 12.400.000 11 21.43 m 24 96
- genow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Lo... r Operating Leverage Teague Co. reports the following data: Sales Variable costs Contribution margin Fixed costs $480,000 264,000 $216,000 175,200 $40,800 Income from operations Determine Teague Co.'s operating leverage. Round your answer to one decimal place.Selected sales and operating data for three divisions of different structural engineering firms are given below: Division C $ 25,450,000 $ 5,090,000 $636,250 12.50% Sales Average operating assets Net operating income Minimum required rate of return Division A $ 12,360,000 $ 3,090,000 $ 494,400 7.00% Required: 1. Compute each division's margin, turnover, and return on investment (ROI). 2. Compute each division's residual income (loss). 3. Assume each division is presented with an investment opportunity yielding a 8% rate of return. a. If performance is being measured by ROI, which division or divisions will accept the opportunity? b. If performance is being measured by residual income, which division or divisions will accept the opportunity? Division B $ 28,360,000 $ 7,090,000 $ 453,760 7.50% Complete this question by entering your answers in the tabs below. Division A Division B Division C Required 1 Required 2 Required 3A Required 3B Assume each division is presented with an…The South Division of Wiig Company reported the following data for the current year. Sales Variable costs Controllable fixed costs Average operating assets 1. 2. 3. Top management is unhappy with the investment center's return on investment (ROI). It asks the manager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action. Return on Investment $2,950,000 1,947,000 Increase sales by $300,000 with no change in the contribution margin percentage. Reduce variable costs by $155,000. Reduce average operating assets by 4%. Action 1 595,000 (a) Compute the return on investment (ROI) for the current year. (Round ROI to 2 decimal places, e.g. 1.57%.) Action 2 5,000,000 Action 3 (b) Using the ROI formula, compute the ROI under each of the proposed courses of action. (Round ROI to 2 decimal places, e.g. 1.57%.) Return on investment do % % % %
- The Western Division of Claremont Company had net operating income of $154,000 and average invested assets of $557,000. Claremont has a required rate of return of 14.75 percent. Western has an opportunity to increase operating income by $48,000 with a $84,000 investment in assets. Compute Western Division's return on investment and residual income currently and if it undertakes the project. Note: Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%). Round your Residual Income (Loss) answers to the nearest whole dollar. Return on Investment (ROI) Residual Income (Loss) Current % Proposed ProjectPresented below is information related to the Southern Division of Lumber, Inc. Contribution margin$1,235,600Controllable margin$931,270Average operating assets$4,049,000Minimum rate of return16% Compute the Southern Division’s return on investment and residual income. Return on investment%Residual income$Kyle Corporation provides the following information for the Product Division and Service Division for the year. Product Division Service Division 420,000 $ 650,000 195,000 245,000 640,000 610,000 14.0% 14.0% Net sales Operating income Average total assets Target rate of return $ Requirement 1. Calculate the return on investment for each division. (Enter answers as a percent rounded to the nearest hundredth percent, X.XX%) The return on investment for the Product Division is The return on investment for the Service Division is Requirement 2. Which division has the highest ROI? % % Requirement 3. Calculate the residual income for each division. (Round answers to the nearest whole dollar.) The residual income for the Product Division is The residual income for the Service Division is Requirement 4. Which division has the highest residual income?
- Dd3. For the most recent year, Petunia Company had the following data for its Clarkston Division, an investment center: total contribution margin—$671,110 budget, $695,741 actual; controllable fixed costs—$298,900 budget, $295,702 actual. Average operating assets for the year were $1,959,045. Determine the actual return on investment.Presented below is selected financial information for two divisions of Crane Brewing. Supply the missing information for the lettered items. Lager Lite Lager Contribution margin $500,000 $299,200 Controllable margin 199,920 (c) Average operating assets $ (a) $1,200,900 Minimum rate of return $ % (b) 14 % Return on investment Residual income 21 % $104,720 % (d) $204,153For its three investment centres, Stahl Company accumulates the following data: Centre I Centre II Centre III Sales $1,971,600 $4,003,000 $3,944,000 Controllable margin 788,640 2,346,970 3,643,800 Average operating assets 4,929,000 8,093,000 12,146,000 The centres expect the following changes in the next year: Centre I a 20% increase in sales; Centre II a $323,720 decrease in costs; and Centre III a $485,840 decrease in average operating assets.Calculate the expected return on investment for each centre. Assume Centre I has a contribution margin percentage of 80%. (Round ROI to 2 decimal places, e.g. 1.57%.) Centre I Centre II Centre III The expected return on investment % % %