QS 9-14 (Algo) Components of performance measures LO A1, A2Fill in the blanks in the schedule below for two separate investment centers A and B.Investment CenterAB$ ?$ 382,200$ 1,470,000$ 11,100,000$ ?$ ?SalesIncomeAverage assetsProfit margin8%?%Investment turnover1.5Return on investment?%12% Use the information in the table above to compute each department's contribution to overhead (both in dollars and as a percent).(Round your final answers to 2 decimal places.)Profit Margin:Numerator:Denominator:Profit MarginInvestment Center= Profit margin8.00 %%ABInvestment Turnover:Numerator:Denominator:Investment TurnoverInvestment Center= Investment turnoverAB1.50Return on investment:Numerator:Denominator:= Return on investmentInvestment Center= Return on investmentA%12.00 %

profit margin ratio is a ratio that is calculated by taking net income on numerator and dividing it…

QS 9-14 (Algo) Components of performance measures LO A1, A2 Fill in the blanks in the schedule below for two separate investment centers A and B. Investment Center A B $ ? $ 382,200 $ 1,470,000 $ 11,100,000 $ ? $ ? Sales Income Average assets Profit margin 8% ?% Investment turnover 1.5 Return on investment ?% 12%

QS 9-14 (Algo) Components of performance measures LO A1, A2 Fill in the blanks in the schedule below for two separate investment centers A and B. Investment Center A B $ ? $ 382,200 $ 1,470,000 $ 11,100,000 $ ? $ ? Sales Income Average assets Profit margin 8% ?% Investment turnover 1.5 Return on investment ?% 12%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Problem 8-23 Profitability Index (LO3) Consider the following projects: Project A Co -$ 3,000 B -3,000 C₁ +$ 2,900 +2,340 C2 +$ 2,100 +1,908 a. Calculate the profitability index for A and B assuming a 24% opportunity cost of capital. Note: Do not round intermediate calculations. Round your answers to 4 decimal places. Answer is complete but not entirely correct. Profitability index Project A 1.2348 X B 1.0427 X b. According to the profitability index rule, which project(s) should you accept? Project A Project B O Both ☑ Neither
Exercise 10-9 (Algo) Return on Investment (ROI) and Residual Income Relations [LO10-1, LO10-2] A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: (Loss amounts should be Indicated by a minus sign. Do not round your Intermediate calculations.) Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return: Percentage Dollar amount Residual income Company A Company B Company C $ 450,000 $ 650,000 $ 610,000 $ 44,000 $ 166,000 24 % $ 155,000 19 % % 13 % % 10 % $ 51,000 $ 7,000
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Exercise 9-7A Return on investment An investment center of Aguilar Corporation shows an operating income of $7,500 on total operating assets of $60,000. Required Compute the return on investment.
Exercise 12-40 (Algo) Single versus Dual Rates (LO 12-5, 6) Kentfield Advisory Services (KAS) is a large management consulting firm organized into two groups: Governmental Services (GS) and Commercial Support (CS). Corporate information technology (IT) services support both groups. The cost of computer support is $48 million. The following information is given: Governmental Services Commercial Support Utilization 42% 58 Revenues (5000) $ 242,820 441,180 Required: What is the cost allocation if fixed IT costs of $37.4 million are allocated on the basis of utilization and the remaining costs (all variable) are allocated on the basis of group revenues? Note: Do not round intermediate calculations. Enter your answers in dollars, not in millions or thousands.
PROGRAMS SELF DEVELOPMENT E-LIBRARY 8. 6. 10 11 12 13 14 15 16 Your company wants to invest JD 10,000,000 in network, taking into consideration the below table Investment 10,000,000.00 Lifetime Annual Revenues in Yearl 2,000,000.00 2% Annual decline in revenues from Y2 30% Direct Cost % of revenues 15% OPEX % of revenues 7% Interest Discount rate/fWACC) CO
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10q-3
QUESTION 25 Top management is trying to determine which would be the best choice of the following: Data of investment choices: 1 Sales $10,000,000 Operating income 200,000 Average operating assets 2,000,000 Required: Compute the Return on Investment 9% 12% 8% 10%
Problem 8-23 Profitability Index (LO3) Consider the following projects: Co C₁ -$ 2,450 +$ 2,350 -2,450 +1,790 Project A B a. Calculate the profitability index for A and B assuming a 23% opportunity cost of capital. Note: Do not round intermediate calculations. Round your answers to 4 decimal places. Project A B C₂ +$ 1,550 +1,798 Profitability index ооо b. According to the profitability index rule, which project(s) should you accept? Project A Project B Both ONeither
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