!Required Information[The following information applies to the questions displayed below.]Megamart, a retailer of consumer goods, provides the following information on two of itsdepartments (each considered an investment center).Investment CenterElectronicsSporting goodsCompute profit margin and investment turnover for each department. Which department generates the most netincome per dollar of sales? Which department is most efficient at generating sales from average invested assets?Profit MarginSalesIncome$39,840,000 $2,988,00025,200,000 2,142,000Complete this question by entering your answers in the tabs below.InvestmentTurnoverInvestmentCenterElectronicsCompute investment turnover for each department. Which department is most efficient at generating sales from averageinvested assets?Choose Numerator:AverageInvested Assets$16,600,00012,600,000Investment TurnoverIIChoose Denominator:Sporting GoodsWhich department is most efficient at generating sales from average investedassets?< Profit Margin= Investment Turnover= Investment Turnover=Investment Turnover >

Profit Margin = (Net income / Sales) x 100 Investment Turnover = Sales / Average Invested Assets

Required Information [The following information applies to the questions displayed below.] Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Electronics Sporting goods Sales Income $39,840,000 $2,988,000 25,200,000 2,142,000 Profit Margin Compute profit margin and investment turnover for each department. Which department generates the most net income per dollar of sales? Which department is most efficient at generating sales from average invested assets? Investment Turnover Complete this question by entering your answers in the tabs below. Average Invested Assets $16,600,000 12,600,000 Choose Numerator: Compute investment turnover for each department. Which department is most efficient at generating sales from average invested assets? Investment Turnover Choose Denominator: Investment Center Electronics Sporting Goods Which department is most efficient at generating sales from average invested assets? = Investment Turnover = Investment Turnover = =

Required Information [The following information applies to the questions displayed below.] Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Electronics Sporting goods Sales Income $39,840,000 $2,988,000 25,200,000 2,142,000 Profit Margin Compute profit margin and investment turnover for each department. Which department generates the most net income per dollar of sales? Which department is most efficient at generating sales from average invested assets? Investment Turnover Complete this question by entering your answers in the tabs below. Average Invested Assets $16,600,000 12,600,000 Choose Numerator: Compute investment turnover for each department. Which department is most efficient at generating sales from average invested assets? Investment Turnover Choose Denominator: Investment Center Electronics Sporting Goods Which department is most efficient at generating sales from average invested assets? = Investment Turnover = Investment Turnover = =

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 1PB: Use the following information to answer the questions that follow. A. Calculate the operating income...

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Please send answer in chart set up Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Sales Income AverageInvested Assets Electronics $ 39,840,000 $ 2,988,000 $ 16,600,000 Sporting goods 25,200,000 2,142,000 12,600,000 1. Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company?2. Assume a target income level of 11% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company?3. Assume the Electronics department is presented with a new investment opportunity that will yield a 15% return on investment. Should the new investment opportunity be accepted?
A supply chain has the following information:(a). Compute the total supply chain throughput time for all the entities from beginning to end.b. Compute the cash-to-cash cycle time for each of thefour entities separately. Based on this calculation, who is benefiting the most?c. Compute the total delivered unit cost in the supplychain from beginning to end. How much profit isthere in the supply chain?
Please send answer in chart format Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Sales Income AverageInvested Assets Electronics $ 39,840,000 $ 2,988,000 $ 16,600,000 Sporting goods 25,200,000 2,142,000 12,600,000 Compute profit margin and investment turnover for each department. Which department generates the most net income per dollar of sales? Which department is most efficient at generating sales from average invested assets?
APPLY THE CONCEPTS: Target income (sales revenue) Another useful method for figuring out the type of performance your company will need to reach a target income is by using sales revenue. Rather than using the number of units, this method uses total sales revenue. In companies for which the total set of goods produced and sold is more varied, this would be the preferred method, as opposed to a business in which only one product is sold. Assume a company has pricing and cost information as follows: Price and Cost Information Amount Selling Price per Unit $30 Variable Cost per Unit $15 Total Fixed Cost $15,000 For the upcoming period, the company wishes to generate operating income of $40,000. Given the cost and pricing structure for the company’s product, how much sales revenue must it generate to attain its target income? Step 1: Calculate the contribution margin ratio: The contribution margin ratio is the contribution margin in proportion to the selling price on a…
Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales Cost of goods sold Gross profit Administrative expenses Income from operations The manager of the Consumer Products Division is considering ways to increase the return on investment. a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that $1,950,000 of assets have been invested in the Consumer Products Division. Round the investment turnover to one decimal place. Profit margin Investment turnover Rate of return on investment Profit margin Investment turnover $1,170,000 526,500 $643,500 409,500 $234,000 b. If expenses could be reduced by $58,500 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on…
Profit Margin, Investment Turnover, and Return on Investment The condensed income statement for the Consumer Products Division of Tri-State Industries Inc. is as follows (assuming no support department allocations): Sales Cost of goods sold Gross profit Administrative expenses Operating income The manager of the Consumer Products Division is considering ways to increase the return on investment. a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that $143,750,000 of assets have been invested in the Consumer Products Division. If required, round your answers to one decimal place. Profit margin $230,000,000 (126,500,000) $103,500,000 (64,400,000) $39,100,000 Investment turnover Return on investment % Investment turnover Return on investment b. If expenses could be reduced by $3,450,000 without decreasing sales, what would be the impact on the profit margin, investment…
Subject: accounting
Required information [The following information applies to the questions displayed below.] Megamart provides the following information on its two investment centers. Investment Center Electronics Income $ 3,114,000 2,261,000 Average Assets $ 17,300,000 13,300,000 Sporting goods Sales $ 41,520,000 18,088,000 1. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? 2. Assume a target income of 11% of average assets. Compute residual income for each center. Which center generated the most residual income? 3. Assume the Electronics center is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? The target return is 11%. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute return on investment for each center. Using return on investment, which center is most efficient…
How to calculate profitability analysis?
True or False.
Use the following information to answer the questions that follow. A. Calculate the operating income percentage for each of the stores. Comment on how your analysis has changed for each store. B. Perform a vertical analysis for each store. Based on your analysis, what accounts would you want to investigate further? How might management utilize this information? C. Which method of analysis (using a dollar value or percentage) is most relevant and/or useful? Explain.
Megamart provides the following information on its two investment centers. Investment Center Electronics Sporting goods Sales $ 63,460,000 19,050,000 Income $ 3,173,000 2,286,000 Average Assets $ 16,700,000 12,700,000 Exercise 22-11 (Algo) Computing profit margin and investment turnover LO A2 Compute profit margin and investment turnover for each center. Which center generates more income per dollar of sales? Which center has the better investment turnover?