Required information [The following information applies to the questions displayed below.] A food manufacturer reports the following for two of its divisions for a recent year. ($ millions) Invested assets, beginning Invested assets, ending Sales Operating income ($ millions) Targeted return Target income Residual Income Residual income Assume that each of the company's divisions has a required rate of return of 6%. Compute residual income for each division. (Enter your answers in millions.) Beverage Beverage Division Beverage $2,684 2,604 2,692 360 Cheese Cheese Division Cheese $4,477 4,411 3,936 645

Required information [The following information applies to the questions displayed below.] A food manufacturer reports the following for two of its divisions for a recent year. ($ millions) Invested assets, beginning Invested assets, ending Sales Operating income ($ millions) Targeted return Target income Residual Income Residual income Assume that each of the company's divisions has a required rate of return of 6%. Compute residual income for each division. (Enter your answers in millions.) Beverage Beverage Division Beverage $2,684 2,604 2,692 360 Cheese Cheese Division Cheese $4,477 4,411 3,936 645

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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Required information Skip to question [The following information applies to the questions displayed below.] King Mattresses sells both mattress sets and bed frames. Last quarter, total sales were $70,000 for mattress sets and $45,000 for bed frames. Return on investment (ROI) was 15% for both divisions, while asset turnover (AT) was 3 for mattress sets and 3 for bed frames. Compute King Mattresses’s total return on sales (ROS) for the quarter.
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Giardin Outdoors is a recreational goods retailer with two divisions: Online and Stores. The two divisions both use the services of the corporate Finance and Accounting (F and A) Department. Annual costs of the F and A Department total $5.215 million a year. Managers in the two operating divisions are measured based on division operating profits. The following selected data are available for the two operating divisions: Online Stores Revenues ($000) Fixed Variable Total $ 74,700 40,500 Required: Determine the cost allocation if $3.815 million of the F and A costs are fixed and allocated on the basis of revenues, and the remaining costs, which are variable, are allocated on the basis of transactions. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Transactions_ (000) 1,216.5 358.5 Online Stores
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