What is the division's margin on these financial accounting question? Oceanic Industries is a division of a large corporation. Last year,the division had total sales of $18,500,000, net operating income of$450,000, and average operating assets of $6,000,000. Thecompany's minimum required rate of return is 10%.The division's margin is closest to:a. 24.3%b. 17.5%c. 2.43%d. 3.2%

The margin is calculated using the formula: Margin = (Net Operating Income ÷ Sales) × 100 Given:Net…

Answered: Oceanic Industries is a division of a…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...

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Ceder Products is a division of a major corporation. Last year the division had total sales of $21.520,000, net operating income of $538,000, and average operating assets of $8,000,000. The company's minimum required rate of return is 18%. The division's turnover is closest to: A. 2.52 B. 0.07 C. 40.00 D. 2.69
What is division margin?
Cabell Products is a division of a major corporation. Last year the division had total sales of $26,720,000, net operating income of $2,624,320, and average operating assets of $7,400,000. The company's minimum required rate of return is 15%. The division's turnover is closest to: Multiple Choice O O O O 10.18 3.61 0.35 2.36
Division Y has generated sales revenue of $260,000 and achieved operating income of $18,500 using $20,000 of invested assets. If management desires a minimum rate of return of 10%, the profit margin would be _____. a.14.4% b.19.5% c.7.1% d.10.2%
What is the division's margin of this accounting question?
Alexander Inc. makes basketballs. The results for the year were as follows: Basketballs Sales $450,000 Income $72,000 Asset base $300,000 Weighted average cost of capital 15% Required:Compute the following amounts for the company:SHOW ALL CALCULATIONS. ROUND EACH NUMBER TO TWO (2) DECIMAL PLACES. A. Return on investment (ROI). B. Residual income if the desired rate of return is 20%. C. EVA. D. Turnover. E. Margin.
The following info is provided for three operating divisions. The minimum accepted rate of return by the investor is 7%. Division M N P invested assets 14,000,000 86,000,000 840,000 Compute Return on Investment for: a. Division M type your answer... b. Division N type your answer... c. Division P type your answer... sales net income Compute Residual Income for: 25,000,000 112,000,000 1,750,000 d. Division M$ type your answer... e. Division N $ f. Division P$ type your answer... type your answer... 50,000,000 250,000,000 6,000,000 g. What division looks like the best division? type your answer...
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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?
Loon Products is a division of a major corporation. Last year the division had total sales of $11,650,000, net operating income of $1,141,700, and average operating assets of $3,495,000. The company's minimum required rate of return is 11%. 11 The division's residual income is closest to: А. $ 1,141,700 В. $ 757,250 (768,900) 1,526,150 None of the above C. $ D. $ Е.
The following information relates to last year's operations at the Legumes Division of Gervani Corporation: Minimum required rate of return Return on investment (ROI) Sales Turnover (on operating assets) What was the Legume Division's net operating income last year? Multiple Choice O $15,120 $65,520 $50,400 $32,760 6% 7.8% $ 840,000 2 times

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