Lark Division is part of a large company. The following financials are reported for the current year: Metric Sales Value $18,000,000 Net operating income $1,260,000 Average operating assets $4,500,000 What is the division's margin?

Lark Division is part of a large company. The following financials are reported for the current year: Metric Sales Value $18,000,000 Net operating income $1,260,000 Average operating assets $4,500,000 What is the division's margin?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter11: Performance Evaluation And Decentralization

Section: Chapter Questions

Problem 27E: Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the...

See similar textbooks

Related questions

Q: What should be the balance in Francisco lease liability at December 31, 2012?

A: Step 1: Definition of Lease LiabilityLease liability is a financial obligation recorded by a lessee…

Q: Accounting

A: Step 1: Definition of Stockholders' EquityStockholders' equity represents the owners' residual…

Q: What was the standard cost per unit of product?

A: Concept of Standard Costing:Standard costing is a system where predetermined costs are assigned to…

Q: Please provide the correct answer to this general accounting problem using valid calculations.

A: Step 1: Definition of Recognized Gain or Loss in Partnership Interest SaleRecognized gain or loss is…

Q: Hi expert please given correct answer with accounting question

A: Step 1: Definition of Double-Declining Balance (DDB) DepreciationDouble-Declining Balance (DDB)…

Q: Please provide the correct answer to this financial accounting problem using accurate calculations.

A: Step 1: Definition of Adjusted Book BalanceThe adjusted book balance is the revised ending balance…

Q: SSS Enterprises has total debt of $8,450 and a debt-equity ratio of 0.72. What is the value of the…

A: To find the total assets of SSS Enterprises, we need to use the information provided:Total debt =…

Q: At the beginning of the recent period there were 1,020 units of product in a department, one-third…

A: Explanation of Weighted-Average Method:The weighted-average method is a process costing technique…

Q: Juan Leon Martinez posted Apr 7, 2025 11:25 AM Subscribe Hello everyone, Esteban is not performing…

A: In this situation, Esteban's unethical conduct of utilizing business resources for personal benefit…

Q: How much total sales are required to achieve a net income of $160,000?

A: To calculate the required total sales to achieve a net income of $160,000, we use the…

Q: general accenting

A: Step 1: Definition of Straight-Line Depreciation with Partial-Year UseStraight-line depreciation…

Q: None

A: Concept of Days Sales Outstanding (DSO):Days Sales Outstanding (DSO) is a financial metric that…

Q: Please provide the correct answer to this general accounting problem using accurate calculations.

A: Step 1: DefinitionsConcept of Net Fixed Assets:Net fixed assets represent the value of a company's…

Q: What is the value of ending long-term debt?

A: Step 1: Definition of Ending Long-Term DebtEnding long-term debt refers to the amount of principal…

Q: Kennedy Devices has beginning net fixed assets of $610 and ending net fixed assets of $755. Assets…

A: Step 1: DefinitionsConcept of Capital Spending:Capital spending (also called capital expenditures or…

Q: Can you solve this general accounting problem using appropriate accounting principles?

A: Step 1: Definition of EquityEquity represents the residual interest in the assets of a business…

Q: Please provide the correct answer to this financial accounting problem using accurate calculations.

A: Provided Data:Annual sales = $528,700Total debt = $105,300Total equity = $184,500Profit margin =…

Q: Swamy Stationery Inc. budgeted production of 64,000 planners in 2023. Paper is required to produce a…

A: Concept of Budgeted Production:Budgeted production refers to the number of units a company plans to…

Q: What amount should the bond issue proceeds increase shareholders equity ?

A: Step 1: Calculate the number of bonds issued The total value of the bond issuance is $3,500,000, and…

Q: Can you help me solve this general accounting problem using the correct accounting process?

A: Step 1: Define Absorption CostingAbsorption costing is a method where all manufacturing costs—direct…

Q: Please provide the answer to this general accounting question using the right approach.

A: Step 1: Definition of Straight-Line DepreciationStraight-line depreciation is a method of allocating…

Q: I need guidance with this general accounting problem using the right accounting principles.

A: Step 1: Definitions Concept of Special Order:A special order is a one-time customer order, often at…

Q: MCQ

A: Explanation of Income Statement:The income statement reports a company's revenues and expenses over…

Q: Correct answer please general accounting

A: Step 1: Definition of Differential CostDifferential cost, also known as incremental cost or…

Q: Please provide the solution to this general accounting question using proper accounting principles.

A: Step 1: Define Call PremiumA call premium is the amount above the par value that a company must pay…

Q: Subject financial accounting

A: Step 1: Definition of Period CostsPeriod costs are costs that are not directly tied to the…

Q: What are the equivalent units for conversion costs using the weighted average process costing…

A: Concept of Work-in-Process (WIP) Inventory:Work-in-Process (WIP) inventory refers to the units that…

Q: Financial accounting problem

A: Step 1: Introduction to ratio analysisRatio analysis is a method used to analyze financial…

Q: Please give me answer with accounting

A: Step 1: Definition of Fixed Manufacturing CostFixed Manufacturing Costs are production expenses that…

Q: What amount of current liabilities does this firm have?

A: Explanation of Controllable costs:Controllable costs are expenses that a manager or department has…

Q: Please provide the correct answer to this financial accounting problem using valid calculations.

A: Step 1: Definition of Lower-of-Cost-or-Market (LCM) RuleThe Lower-of-Cost-or-Market (LCM) rule is an…

Q: TimberTech, Inc. manufactures power drills that sell for $85. Each power drill uses $18 in direct…

A: Provided Data:Selling price per drill = $85 (not needed for cost calculation, but good…

Q: Need answer

A: Explanation of Assets: Assets are economic resources owned or controlled by a company that are…

Q: Accounting solution please

A: Step 1: Definition of Return on Assets (ROA)Return on Assets (ROA) is a profitability ratio that…

Q: Answer please

A: Explanation of Bonds Issued at a Discount:When a bond is issued at a discount, it means the bond is…

Q: I want to correct answer

A: Step 1: Definition of Sales (based on Gross Profit)Sales refer to the total revenue a business earns…

Q: what is the P/E ratio?

A: Step 1: Understand the Formula The formula to calculate it is: P/E Ratio = Market Price per Share…

Q: Accounting

A: Step 1: Definition of Break-Even and Target Profit AnalysisTarget profit analysis determines the…

Q: What is the balance in accounts receivable at year-end?

A: Step 1: Definition of Accounts Receivable BalanceAccounts receivable balance represents the amount…

Q: Can you help me solve this financial accounting question using valid financial accounting…

A: To calculate the maturity value of the note, you use the formula: Maturity Value = Principal +…

Q: I am searching for the accurate solution to this general accounting problem with the right approach.

A: Step 1: Definition of License ExpenseLicense expense refers to the portion of a prepaid license cost…

Q: Help please

A: Step 1: Definition of Contribution MarginContribution Margin is the amount remaining from sales…

Q: What is the profit earned per share?

A: Understanding P/E RatioThe Price-to-Earnings (P/E) ratio is calculated as: P/E Ratio = Market Price…

Q: managerial accounting

A: Step 1: Definition of Rate of ReturnThe Rate of Return (RoR) is the percentage gain or loss an…

Q: Rose Corp. If sales are $500,000, variable costs are 68% of sales, and operating income is $50,000,…

A: Calculate Contribution MarginThe contribution margin is the amount remaining from sales revenue…

Q: Estimated MHs at the beginning of the period were?

A: Explanation of Manufacturing Overhead (MOH): Manufacturing overhead encompasses all indirect costs…

Q: How much did the owner withdraw ?

A: Explanation of Assets:Assets are resources owned or controlled by a business that provide future…

Q: Accurate answer

A: Effective cost of borrowing = 1/(1-Discount rate)(365/Average collection period) -1 Effective cost…

Q: I need help

A: Step 1: Definition of Degree of Operating Leverage (DOL)Degree of Operating Leverage (DOL) is a…

Q: I need help with this financial accounting problem using proper accounting guidelines.

A: Step 1: Define Capital ImprovementsCapital improvements are additions or upgrades to an asset that…

Question

Can you explain this financial accounting question using accurate calculation methods?

Lark Division is part of a large company. The following financials
are reported for the current year:
Metric
Sales
Value
$18,000,000
Net operating income $1,260,000
Average operating assets $4,500,000
What is the division's margin?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Far Sight is a division of a major corporation. The following data are for the latest year of operations: Required: a. What is the division's return on investment (ROI)?b. What is the division's residual income? Sales 24,480,000 Net operating income 1.738.000 average operating assets 6,000 rate of return 16%
Can you solve this financial accounting question with the appropriate financial analysis techniques?
Calculator Data for Divisions A, B, C, D, and E are as follows: a. Determine the missing items. Round rate of return on investment, profit margin, and investment turnover answers to one decimal place when required. Div. Sales Income from Operations Inv. Assets Rate of Return on Inv. Profit Margin Invest. Turnover A $ $35,000 $200,000 % % 1.6 B $455,000 $ $284,375 16% % C $525,000 $73,500 $ % % 1.2 D $800,000 $ $ % 13.0% 2.5 E $ $ $250,000 % 16.0% 2.0 b. Which division is most profitable in terms of income from operations? c. Which division is most profitable in terms of rate of return on investment?
A company has three divisions, X, Y, and Z, with the following financial data: • Sales for Division X: $1,800,000 Investment in assets for Division X: $630,000 What is the asset turnover (AT) for Division X? A. 1.43 B. 1.60 C. 1.67 D. 2.86 E. 3.33
Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z Sales $ 1,350,000 $ 940,000 $ 4,869,000 Operating Income 139,100 98,800 225,300 Investment in assets 272,900 434,400 3,253,200 The asset turnover (AT) for Division Y is calculated to be (rounded):
What is the division's margin of this financial accounting question?
What is the division's margin on these general accounting question?
What is the division's margin on these general accounting question?
(J) Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division ADivision BDivision CSales$ 12,120,000$ 28,120,000$ 20,120,000Average operating assets$ 3,030,000$ 7,030,000$ 5,030,000Net operating income$ 496,920$ 449,920$ 503,000Minimum required rate of return7.00%7.50%10.00%Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 8% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity
Assume a company with two divisions (A and B) prepared the following segmented income statement: A B Total Sales $ ? $ 200,000 $ ? Variable expenses 120,000 140,000 260,000 Contribution margin ? ? ? Traceable fixed expenses 100,000 80,000 180,000 Segment margin $ ? $ (20,000 ) ? Common fixed expenses 49,700 Net operating income $ 3,000 What is Division A’s segment margin?
The sales, income from operations, and invested assets for each division of Grosbeak Company are as follows: Sales Income fromOperations InvestedAssets Division E $5,000,000 $550,000 $2,400,000 Division F 4,800,000 860,000 2,500,000 Division G 7,000,000 860,000 2,900,000 a. Using the DuPont formula, determine the profit margin, investment turnover, and rate of return on investment for each division. Round profit margin to two decimal places, investment turnover to four decimal places and rate of return on investment to one decimal place. Division E Division F Division G Profit Margin % % % Investment Turnover Rate of return on investment % % % b. Which division is the most profitable per dollar invested?
Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z Sales $ 1,486,000 $ 830,000 $ 4,503,000 Operating Income 208,700 126,600 286,600 Investment in assets 517,200 493,700 3,788,900 The return on sales (ROS) for Division Y is: Multiple Choice 7.6%. 14.0%. 15.3%. 25.6%. 6.4%.