The following data relates to Titan Electric and its Light Bulb Division.Light Bulb Division salesLight Bulb Division operating incomeLight Bulb Division total assetsLight Bulb Division current liabilitiesCorporate target rate of returnCorporate weighted average cost of capitalCorporate effective tax rateWhat is the Light Bulb Division's sales margin?OA. 180%OB. 18%OC. 13.5%OD. 10%$7,200,000$720,000$4,000,000$540,00012%5%25% Smith Manufacturing designs and manufactures bathtubs for home and commercial applications. The company recorded the following data for its commmonth of March:Standard DL hours per tubStandard variable overhead rate per DL hourStandard variable overhead cost per unitActual variable overhead costsActual DL hoursActual variable overhead cost per DL hourOA. $23,400 favorableOB. $9,200 favorable5$4.50$22.50Actual tubs produced1,500What is the variable manufacturing overhead rate variance in March?OC. $23,400 unfavorableOD. $9,200 unfavorable$19,5502,300$8.50

SALES MARGIN RATIO Sales Margin is the ratio between Net Income & Total Sales during the…

The following data relates to Titan Electric and its Light Bulb Division. Light Bulb Division sales Light Bulb Division operating income Light Bulb Division total assets Light Bulb Division current liabilities Corporate target rate of return Corporate weighted average cost of capital Corporate effective tax rate What is the Light Bulb Division's sales margin? OA. 180% OB. 18% O C. 13.5% OD. 10% $7,200,000 $720,000 $4,000,000 $540,000 12% 5% 25%

The following data relates to Titan Electric and its Light Bulb Division. Light Bulb Division sales Light Bulb Division operating income Light Bulb Division total assets Light Bulb Division current liabilities Corporate target rate of return Corporate weighted average cost of capital Corporate effective tax rate What is the Light Bulb Division's sales margin? OA. 180% OB. 18% O C. 13.5% OD. 10% $7,200,000 $720,000 $4,000,000 $540,000 12% 5% 25%

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

North South East West Sales $100,000 $25,000 $75,000 $76,000 CGS $50,000 $5,000 $50,674 $45,000 other expenses $25,000 $3,000 $12,894 $15,000 Average total assets $5,000,000 $50,000 $300,500 $567,850 Using the information, calculate the operating profit percentage for each of the divisions. Comment on how your analysis has changed compared to your analysis of the dollar amounts for each division. Using total assets as the investment, calculate the ROI for each division. Comment on the results. Assume a cost of capital of 10%. Calculate the RI for each of the divisions. Comment on the results.
Selected financial data for Woody Company's Furniture Division is as follows: Sales Operating income Total assets Current liabilities Target rate of return Weighted average cost of capital $2,100,000 $420,000 $1,050,000 $200,000 12% 10% What is Woody Company's Furniture Division return on investment? A) 9.52% B) 40.00% C) 20.00% D) 2000.00%
Adams Cough Drops operates two divisions. The following information pertains to each division for Year 1. Division A Division B $200,000 $85,000 $ 16,100 $ 9,300 $ 59,000 $37,000 17% Sales Operating income Average operating assets Company's desired rate of return 17% Required a. Compute each division's residual income. b. Which division increased the company's profitability more? a. Division A Division B b. The division that increased the company's profitability more is Residual Income
A company has the following information available for three of its divisions. COMPANY INFORMATION FOR THREE DIVISIONS Division M Investment in Assets $ 1,200,000 Division N ? Division O $ 2,500,000 Operating Income Sales Revenue ? $ 160,000 250,000 ? $ 3,200,000 ? Profit Margin Ratio 10.00% ? 6.25% Required Rate of Return 10.00% 12.50% 15.00% Return on Investment 15.00% 20.00% ? What is Division O's sales revenue? $1,666,667. $4,000,000. $2,000,000. $ 375,000.
None
The Emergency Medical Services Company has two divisions that operate independently of one another. The financial data for the year 20x5 reported the following results North South $4,440,000 $3,940,000 1,110,000 910,000 920,000 645,000 6,000,000 5,000,000 Sales Operating income Taxable income Investment The company's desired rate of return is 10%. Income is defined as operating income. a. What are the respective return-on-investment ratios for the North and South divisions? Round ROI to the nearest whole percentage. ROI North South b. What are the respective residual incomes of the North and South divisions? Residual income North S South S c. Which division has the better return on investment and which division has the better residual income figure? Return on investment i # Residual income
QUESTION: THE INCOME OPERATIONS AND THE INVESTED ASSETS IN EACH DIVISION ZERO INDUSTRIES ARE AS FOLLOWS: INCOME OPERATIONS RETAIL DIVISION $343,200 COMMERCIAL 320,000 DIVISION INTERNET 176,000 AMOUNT OF OF MAGNETIC FROM INVESTED ASSETS $1,320,000 1,600,000 800,000 DIVISION A. COMPUTE THE RATE OF RETURN ON INVESTMENT FOR EACH DIVISION. B. WHICH DIVISION IS THE MOST PROFITABLE PER DOLLAR INVESTED?
Want Correct Answer
Required information Use the following information for the Problems below: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Sales revenue Income Division A ? Division B Division C $ 11,000,000 ? $ 530,000 $ 2,130,000 ? Average investment ? $ 2,500,000 ? Sales margin 30% ? 35% Capital turnover 2 ? ? ROI Residual income ? ? ? 40% ? $ 139,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 10 percent. Note: Round "Capital turnover" answers to 2 decimal places. Division A Division B Division C Sales revenue $ 40,100,000 Income $ 1,650,000 $ 8,822,000 Average investment $ 10,025,000 Sales margin 22 % % 25 % Capital turnover ROI Residual income 1.00 200 % % $ 69 22 % 450,000
Assume the Hiking Shoes division of the Simply Shoes Company had the following results last year (in thousands). Management's target rate of return is 30% and the weighted average cost of capital is 15%. Its effective tax rate is 30%. Sales Operating income Total assets Current liabilities What is the division's Return on Investment (ROI)? A. 68.57% B. 171.43% C. 40% O D. 22.57% $6,000,000 2,400,000 3,500,000 790,000 CO
The following information pertains to Travis Concrete: Sales revenue $2,000,000 Gross margin 700,000 100,000 550,000 Income Invested capital The company's imputed interest rate is 8%. The capital turnover is: Multiple Choice 27.50. 3.64. 20.00.
The following data relates to the XYZ Corporation and its X Division. X Division sales P 8,000,000 X Division operating income P 480,000 X Division total assets P 2,000,000 X Division current liabilities P 600,000 Corporate target rate of return 14% Corporate weighted average cost of capital 10% Corporate effective tax rate 30% What is the X Divisions Economic Value Added (EVA)?