Phoenix Division is a segment of Horizon Corporation. The following data are for the most recent year of operations: Sales: $8,640,000 Net operating income: $259,200 Average operating assets: $2,400,000 The company's minimum required rate of return: 12% The division's turnover used to compute ROI is closest to: (a) 0.108 (b) 3.6 (c) 2.78 (d) 4.32

Phoenix Division is a segment of Horizon Corporation. The following data are for the most recent year of operations: Sales: $8,640,000 Net operating income: $259,200 Average operating assets: $2,400,000 The company's minimum required rate of return: 12% The division's turnover used to compute ROI is closest to: (a) 0.108 (b) 3.6 (c) 2.78 (d) 4.32

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...

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Forchen, Inc., provided the following information for two of its divisions for last year: Required: 1. For the Small Appliances Division, calculate: a. Average operating assets b. Margin c. Turnover d. Return on investment (ROI) 2. For the Cleaning Products Division, calculate: a. Average operating assets b. Margin c. Turnover d. Return on investment (ROI) 3. What if operating income for the Small Appliances Division was 2,000,000? How would that affect average operating assets? Margin? Turnover? ROI? Calculate any changed ratios (round to four significant digits).
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A Using Common Size Statements The following income statement and vertical analysis data are available for Riley Manufacturing: Required: 1. CONCEPTUAL CONNECTION Suggest why net income declined from $273,200 to $41,600 while the cost of goods sold percentage decreased each year and selling and administrative expenses remained nearly constant. 2. CONCEPTUAL CONNECTION Determine what could cause sales to decline while the gross margin percentage increases.