Assume a company reported the following results: $ 400, 000 260,000 Sales Variable expenses Contribution margin Fixed expenses 140,e00 40,eee Net operating income S 100, eee Average operating assets $ 450, e00 The return on investment (RO) is closest to: Multiple Choice 88.9%
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- Provide the missing data in the following tabulation: Division Alpha Bravo Charlie Revenue 11500000 Operating profit 920000 210000 Average operating assets 800000 Margin 4,00% 7,00% Turnover 5 Return on investment (ROI) 20% 14%Use the following information to answer the questions. Company X $ 12,480,000 $ 3,120,000 $ Company Y $ 28,480,000 $ 7,120,000 512,640 8.50% Company Z $ 20,480,000 $ 5,120,000 532,480 10.40% Sales Average operating assets Net operating income Minimum required rate of return 561,600 8.00% Required: 1. Compute the return on investment (ROI) for each company using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each company. 3. Each company is presented with an investment opportunity that would yield a 9% rate of return. a. Assume performance is measured based on ROI. Indicate whether each company will likely accept or reject the investment opportunity. b. Assume performance is measured based on residual income. Indicate whether each company will likely accept or reject the investment opportunity. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Reg ЗA Req 3B Compute the return on investment (ROI) for each company…Assume a company had net operating income of $300,000, sales of $1,500,000, residual income of $130,000, and a minimum required rate of return on average operating assets of 14.00%. The company's average operating assets are closest to: Multiple Choice $1,214,286. $1,035,715. $1,157144. $1,200,000. 田
- Assume a company reported the following information: Sales Minimum required rate of return on average operating assets Turnover Return on investment (ROI) The residual income is closest to: Multiple Choice O O O $14,800. $10,800. $16,800. $20,800. $ 900,000 9.2% 1.5 12%Use the following information to answer the questions. Company X $ 12,480,000 $ 3,120,000 561,600 8.00% Company Y $ 28,480,000 $ 7,120,000 2$ Company Z $ 20,480,000 $ 5,120,000 532,480 Sales Average operating assets Net operating income Minimum required rate of return $ 512,640 8.50% 10.40% Required: 1. Compute the return on investment (ROI) for each company using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each company. 3. Each company is presented with an investment opportunity that would yield a 9% rate of return. a. Assume performance is measured based on ROI. Indicate whether each company will likely accept or reject the investment opportunity. b. Assume performance is measured based on residual income. Indicate whether each company will likely accept or reject the investment opportunity. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req ЗA Req 3B Each company is presented with an investment…Shalom Company provided you the following data: Net operating income Total liabilities Contribution margin Average operating assets Sales 150,000 350,000 400,000 750,000 800,000 What is the return on investment?
- Assume a company reported the following results: Sales Variable expenses Contribution margin Fixed expenses $ 400,000 268,000 140,000 40,000 $ 100,000 $ 425,000 Net operating income Average operating assets If the company's minimum required rate of return on average operating assets is 16%, its residual income would be: Multiple Choice $33.000. $35.000. $32.000. $34,000Data Sales Net operating income Average operating assets Minimum required rate of return Enter a formula into each of the cells marked with a ? below Review Problem: Return on Investment (ROI) and Residual Income Compute the ROI Margin Turnover ROI Compute the residual income Average operating assets $25,000,000 $3,000,000 $10,000,000 25% Net operating income Minimum required return Residual income ? ? ? ? ? ? ?For its three investment centers, Indigo Company accumulates the following data: Sales Controllable margin Average operating assets 1 $2,400,000 $4,800,000 $4,800,000 1,560,000 2.208,000 6,000,000 9,600,000 The return on investment i 11 Compute the return on investment (ROI) for each center. % 111 4,080,000 12,000,000 HE %
- V. A company’s contribution format income statement for the previous follows: AmountSales P300,000Variable expenses 120,000Contribution margin 180,000Fixed expenses 108,000Net operating income P72,000 Required:a. Compute the company’s degree of operating leverage. b. Using the computed degree of operating leverage, estimate the effect on net operating income of a 5% increase in sales. c. Prepare an income statement using contribution format to verify your answer in (b)Assume a company reported the following results: Sales Net operating income Average operating assets Margin Turnover Return on investment (ROI) The margin is closest to: $ 300,000 ? $ 187,500 ? ? 35%Given the following data: Average operating assets $ 1,116,000 Total liabilities $ 167,400 Sales $ 837,000 Contribution margin $ 502,200 Net operating income $ 167,400 Return on investment (ROI) is: Multiple Choice 20.0% 15.0% 60.0% 45.0%