The profit margin for Division A is 6% and the investment turnover is 2.25. What is the rate of return on investment for Division A? a. 8.25% b. 12.0% c. 13.5% d. 15.0%
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What is the rate of return on investment for division A?? General accounting
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- hi expert please help meGiven the following data: Average operating assets $1,152,000 Total liabilities 65,280 Sales 384,000 Contribution margin 230,400 Net operating income 103,680 Return on investment (RCOI) is:Determining missing items in return on investment computation One item is omitted from each of the following computations of the return on investment: Return on Investment = Profit Margin x Investment Turnover 24 % = 10 % x (a) (b) = 24 % x 0.75 12 % = (c) x 1.5 16 % = 20 % x (d) (e) = 15 % x 2.2
- (16) The profit margin for Division C is 10.1%, and the investment turnover is 1.5. What is the return on investment for Division C?Average Rate of Return Method, Net Present Value Method, and Analysis for a service companyUsing the following data, estimate the new Return on Investment if there is a 11% increase in sales - with average operating assets as the base. Sales $3,838,419 Contribution margin Controllable fixed costs Average operating assets 42% 368,503 $5,166,749 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.
- Condensed financial data are presented below for the Phoenix Corporation: Accounts receivable Inventory Total current assets Intangible assets Total assets Current liabilities Long-term liabilities Sales Cost of goods sold Interest expense Income tax expense Net income Cash flow from operations Cash flow from investing activities Cash flow from financing activities Tax rate 20X2 $ 267,500 312,500 670,000 50,000 825,000 695,000 252,500 - 200,000 77,500 75,000 1,640,000 982,500 10,000 77,500 127,500 71,000 (6,000) (62,500) 30% The profit margin used to calculate return on assets for 20X2 is (rounded): 20X1 $230,000 257,500 565,000 60,000Calculate the residual income with the following data: Controllable margin $202,596 Minimum Rate of Return 11% Average Operating Assets $3,092,235 Round to the nearest whole dollar, no decimal places. Note: Controllable margin is the same as net income for a segment with control over the costs. Minimum rate of return is the same as the cost of capital.Steel corporation presented the following results for the period just ended: Sales 6,000,000 Capital Investment 2,000,000 Net Income 1,000,000 To arrive at the return on investment, which of the following should be used? A. ROI = (6/2) X (1/6) B. ROI= (2/6) X (1/6) C. ROI= (6/2) X (6/1) D. ROI= (2/6) X (6/1)
- Using the following data, estimate the new Return on Investment if there is a 9% decrease in the average operating assets - with the new average operating assets as the base. Sales $2,217,038 Contribution margin Controllable foxxed costs Average operating assets 34% 283,398 $4,189,521 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.Return on investment (ROI) could be calculated using which of the following formulas? W Multiple Choice O O X Margin * (Net operating income + Sales) O X O Margin x (Average operating assets + Sales) X Margin * (Sales - Net operating income) Type here to search X Margin × (Sales - Average operating assets) < Prev 2 of 10If sales are.....accounting question
