Sales 13,000,000 Variable expenses 8,600,000 Contribution margin 4,400,000 Fixed expenses 2,940,000 Net operating income 1,460,000 The Company's average operating assets were $8,000,000. It's minimum required return was 15%. 1. What is the company's margin percentage? 2. What is the company's turnover? 3. What is the company's return on investment? 4. What is the company's residual income?
Sales 13,000,000 Variable expenses 8,600,000 Contribution margin 4,400,000 Fixed expenses 2,940,000 Net operating income 1,460,000 The Company's average operating assets were $8,000,000. It's minimum required return was 15%. 1. What is the company's margin percentage? 2. What is the company's turnover? 3. What is the company's return on investment? 4. What is the company's residual income?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 4BE: Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested...
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![Sales
13,000,000
Variable expenses
8,600,000
Contribution margin
4,400,000
Fixed expenses
2,940,000
Net operating income
1,460,000
The Company's average operating assets were $8,000,000. It's minimum required
return was 15%.
1. What is the company's margin percentage?
2. What is the company's turnover?
3. What is the company's return on investment?
4. What is the company's residual income?
Enter your answers in the same order as above.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8c845cf8-3d77-4ddd-9d5a-2a560adfc5de%2F8177c4c6-cb7f-424b-94fe-f1b8eb07f28b%2Ff70n8zn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sales
13,000,000
Variable expenses
8,600,000
Contribution margin
4,400,000
Fixed expenses
2,940,000
Net operating income
1,460,000
The Company's average operating assets were $8,000,000. It's minimum required
return was 15%.
1. What is the company's margin percentage?
2. What is the company's turnover?
3. What is the company's return on investment?
4. What is the company's residual income?
Enter your answers in the same order as above.
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