The Electronics Division of Apex Company reports the following results for 2014: Revenues $472,000 Operating expenses $424,000 Operating income Operating assets $48,000 $580,000 Apex Company has set a target return on investment (ROI) of 11% for the Electronics Division. The Electronic Division's margin is: a. 12.89%. b. 10.17%. c. 11.32%. d. 8.28%.

The Electronics Division of Apex Company reports the following results for 2014: Revenues $472,000 Operating expenses $424,000 Operating income Operating assets $48,000 $580,000 Apex Company has set a target return on investment (ROI) of 11% for the Electronics Division. The Electronic Division's margin is: a. 12.89%. b. 10.17%. c. 11.32%. d. 8.28%.

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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Coolbrook Company has the following information available for the past year: River Division Stream Division Sales revenue $ 1,209,000 $ 1,810,000 Cost of goods sold and operating expenses 900,000 1,286,000 Net operating income $ 309,000 $ 524,000 Average invested assets $ 1,200,000 $ 1,460,000 The company’s hurdle rate is 6.26 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)) river steam ROI % % Residual income (loss) 2. Recalculate ROI and residual income for the division for each independent situation that follows: Operating income increases by 11 percent. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.). Loss…
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A7
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