The Hydride Division of Murdoch Corporation is an investment center. It has $1,000,000 of operating assets. During 2015, the Hydride Division earned operating income of $400,000 on $6,000,000 of sales. Murdoch's companywide return on investment or desired rate of return is approximately 10%.   a. What is the ROI?   b. What is the margin?   c. What is the turnover?   d. What is the residual income?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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The Hydride Division of Murdoch Corporation is an investment center. It has $1,000,000 of operating assets. During 2015, the Hydride Division earned operating income of $400,000 on $6,000,000 of sales. Murdoch's companywide return on investment or desired rate of return is approximately 10%.

 

a. What is the ROI?

 

b. What is the margin?

 

c. What is the turnover?

 

d. What is the residual income?

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