Selected sales and operating data for three divisions of a multinational structural engineering firm are provided below: Sales Average operating assets Net operating income Minimum required rate of return Required: 1. Compute the ROI for each division using the formula stated in terms of margin and turnover. 2. Compute the RI for each division. Asia $12,000,000 $3,000,000 $ 420,000 14% Division Europe $14,000,000 $ 5,000,000 $ 400,000 10% North America $25,000,000 $10,000,000 $ 1.000.000 16%

Selected sales and operating data for three divisions of a multinational structural engineering firm are provided below: Sales Average operating assets Net operating income Minimum required rate of return Required: 1. Compute the ROI for each division using the formula stated in terms of margin and turnover. 2. Compute the RI for each division. Asia $12,000,000 $3,000,000 $ 420,000 14% Division Europe $14,000,000 $ 5,000,000 $ 400,000 10% North America $25,000,000 $10,000,000 $ 1.000.000 16%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

What is EVA for Division Y?
None
please answer do not image format
Meiji Isetan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama Sales $ 9,600,000 $ 26,000,000 Net operating income $ 672,000 $ 2,340,000 Average operating assets $ 3,200,000 $ 13,000,000 Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 16%. Compute the residual income for each division. 3. Is Yokohama’s greater amount of residual income an indication that it is better managed?
Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Sales Average operating assets Net operating income Property, plant, and equipment (net)) Queensland division New South Wales division Queensland Margin Division Required: 1. Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. 2. Which divisional manager seems to be doing the better job? % % Complete this question by entering your answers in the tabs below. $ 969,000 $ 510,000 Required 1 Required 2 Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Turnover $ 87,210 $ 267,000
2. The Gustavo Industries in São Paulo, Brazil, reported the following results for 2020 (currency in Brazilian real, R$):« Sales R$ 400,000,000- 320,000,000- 40,800,000- 280,000,000- Variable costs Controllable fixed costs Average operating assets Gustavo's Management is considering the following independent courses of action in 2021 in order to maximize the return on investment for this division: Option1: Reduce average operating assets by R$ 80,000,000 with no change in controllable margin. Option2: Increase sales R$ 80,000,000 with no change in the contribution margin percentage. A. Compute the controllable margin and the return on investment for 2020. (25%)- B. Compute the controllable margin and the expected return on investment for each proposed option. (25%)-
ROI and Residual Income A multinational corporation has a number of divisions, two of which are the North American Division and the Pacific Rim Division. Data on the two divisions are as follows: North American Pacific Rim Average operating assets $15,000,000 $6,700,000 Operating income 1,250,000 610,000 Minimum required return 7 % 7 % Round all rates of return to four significant digits. Required: 1. Compute residual income for each division. North American $ fill in the blank 1 Pacific Rim $ fill in the blank 2 By comparing residual income, is it possible to make a useful comparison of divisional performance? 2. Compute the residual rate of return by dividing the residual income by the average operating assets. Enter your answers as percentages, rounded to two decimal places. For example, the decimal value .03827 would be entered as "3.83" percent. North American fill in the blank 4 % Pacific Rim fill in the blank 5 % Is it possible now to…
Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division Queensland New South Wales Sales $ 855,000 $ 2,200,000 Average operating assets $ 570,000 $ 550,000 Net operating income $ 44,460 $ 48,400 Property, plant, and equipment (net) $ 244,000 $ 194,000 Required: 1. Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. 2. Which divisional manager seems to be doing the better job?
Calculate the U.S. division’s operating income for 2017.
Please answer questions No. 1 to 6 of Jay Arr Company. Please provide a complete solution. Thank You
Please Fo not Give image format
1- Assume Division A offers to sell Q) 15,000 units to Division B for $74 and that Division B refuses this price. What will be the loss in potential prodits for the company whole as a whole