Required information[The following information applies to the questions displayed below.]Megamart provides the following information on its two investment centers.Investment CenterElectronicsIncome$ 3,114,0002,261,000Average Assets$ 17,300,00013,300,000Sporting goodsSales$ 41,520,00018,088,0001. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generateincome?2. Assume a target income of 11% of average assets. Compute residual income for each center. Which center generated the mostresidual income?3. Assume the Electronics center is presented with a new investment opportunity that will yield a 14% return on investment. Should thenew 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 3Compute return on investment for each center. Using return on investment, which center is most efficient at using assets togenerate income?Numerator:Return on InvestmentII1Denominator:ElectronicsSporting GoodsWhich center is most efficient at using assets to generate income?< Required 1= Return on Investment=ElectronicsRequired 2 >00 Required information[The following information applies to the questions displayed below.]Megamart provides the following information on its two investment centers.Investment CenterElectronicsAverage Assets$ 17,300,00013,300,000Sporting goodsSales$ 41,520,00018,088,0001. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generateincome?Income$ 3,114,0002,261,0002. Assume a target income of 11% of average assets. Compute residual income for each center. Which center generated the mostresidual income?3. Assume the Electronics center is presented with a new investment opportunity that will yield a 14% return on investment. Should thenew 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 3Assume a target income of 11% of average assets. Compute residual income for each center. Which center generated themost residual income?Investment CenterElectronicsIncomeLess target incomeResidual incomeWhich center generated the most residual income?Sporting GoodsElectronics< Required 1Required 3 >

Return on investment (ROI) :— It is calculated by dividing net operating income by average operating…

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 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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 3EB: Identify the type of responsibility center (revenue center, cost center, profit center, or...

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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?
For its three investment centres, Stahl Company accumulates the following data: Centre I Centre il Centre III Sales $1,996,000 $4,043,000 $3,962,000 Controllable margin 785,760 2,663,760 4,372,200 Average operating assets 4,911,000 8,072,000 12,145,000 Calculate the return on investment (ROI) for each centre. The return on investment Centre I % Centre II % Centre III
How do you solve this problem? Please give an explanation on the third part of the problem.
Saved Compute return on investment for each of the divisions below (each is an investment center). Which division performed the best, based on return on investment? Complete this question by entering your answers in the tabs below. Performance Based on ROI Return on Investment Compute return on investment for each of the divisions below (each is an investment center). (Round your final answers to 1 decimal place.) Average Assets Return on Investment Investment Center Net Income Cameras and camcorders 2$ 6,118,000 $ 26,600,000 Phones and communications 3,628,500 17,700,000 % Computers and accessories 2,106,000 10,800,000 K Returm on Investment Performance Based on ROI >
Required information Use the following information for the Exercises below. [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). Average Invested Assets Sales Income Electronics $63,460,000 $3,173,000 $16,700,000 Sporting goods 19,050,000 2,286,000 12,700,000 Investment Center Exercise 22-10 Computing return on investment and residual income; investing decision LO A1 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 12% 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 14% return on…
In Management Accounting, there are some investment appraisal methods to analyse the performance of investment projects. The following table lists out the financial data of two projects for London Technology Ltd: Projects/Methods A B Payback Period 2 year and 4 months 2 year and 9 months Accounting Rate of Return 27.6% 15.44% Net Present Value £23,040 £21,798 Required: Which project should company accept? In the discussion, please explain which method can lead to better decision.
Subject: acounting
Fill in the blanks in the schedule below for two separate investment centers A and B. Investment Center: Sales Income Average assets Profit margin Investment turnover Return on investment Investment Center A B Investment Turnover: Investment Center A B Return on investment: Investment Center A 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: B Numerator: Numerator: A Numerator: $? $ 584,600 $1,580,000 10% 7 28 B $ 12,200,000 Denominator: Denominator: $? $7 Denominator: 7% 1.3. 13% Profit Margin =Profit margin 10.00 % = Investment Turnover = Investment turnover 1.30 Return on investment = Return on investment. % 13.00 %
Average rate of return method, net present value method, and analysis for a service company The capital investment committee of Iguana Inc. is considering two capital investments. The estimated operating income and net cash flows from each investment are as follows: Year Robotic AssemblerOperating Income Robotic AssemblerNet Cash Flow WarehouseOperating Income WarehouseNet Cash Flow 1 $47,500 $152,000 $100,000 $243,000 2 47,500 152,000 76,000 205,000 3 47,500 152,000 38,000 144,000 4 47,500 152,000 17,000 99,000 5 47,500 152,000 6,500 69,000 Total $237,500 $760,000 $237,500 $760,000 Each project requires an investment of $500,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 15% for purposes of the net present value analysis. Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747…
Shaq Company operates with three segments: Louisiana, Orlando, and Los Angeles.Data regarding these segments is as follows: LouisianaSegment OrlandoSegment Los AngelesSegment Contribution to indirect expenses $328,500 $207,600 $155,500 Assets directly used & identified with segment $1,858,700 $1,410,000 $742,600 1. Calculate the return on investment for each segment. Rank them from highest to lowest. Round percent to 1 decimal place. LouisianaSegment OrlandoSegment Los AngelesSegment Segment Net Income Investment base (assets) ROI (%) Rankings (1,2, or 3, where 1 is the best) 2. Assume the cost of capital is 14% for a segment. Calculate residual income for each segment. Rank them from highest to lowest. Round percent to 1 decimal place. LouisianaSegment OrlandoSegment Los AngelesSegment Segment Net Income Investment base (assets) Cost of Capital (%) Minimum Income Residual Income…
The capital investment committee of Iguana Inc. is considering two capital investments. The estimated operating income and net cash flows from each investment are as follows: Year Robotic AssemblerOperating Income Robotic AssemblerNet Cash Flow WarehouseOperating Income WarehouseNet Cash Flow 1 $48,000 $152,000 $101,000 $243,000 2 48,000 152,000 77,000 205,000 3 48,000 152,000 38,000 144,000 4 48,000 152,000 17,000 99,000 5 48,000 152,000 7,000 69,000 Total $240,000 $760,000 $240,000 $760,000 Each project requires an investment of $480,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 15% for purposes of the net present value analysis. Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8…
he capital investment committee of Iguana Inc. is considering two capital investments. The estimated operating income and net cash flows from each investment are as follows: Year Robotic AssemblerOperating Income Robotic AssemblerNet Cash Flow WarehouseOperating Income WarehouseNet Cash Flow 1 $50,400 $157,000 $106,000 $251,000 2 50,400 157,000 81,000 212,000 3 50,400 157,000 40,000 149,000 4 50,400 157,000 18,000 102,000 5 50,400 157,000 7,000 71,000 Total $252,000 $785,000 $252,000 $785,000 Each project requires an investment of $480,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 10% for purposes of the net present value analysis. Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8…