3. Inc. During the most recent year, Macon had a net income of $40 million. Xenold, Inc., has two sources of financing: bonds paying 5 percent interest, which account for 25 percent of total investment, and equity accounting for the remaining 75 percent of total investment. A: a. b) Net operating income less the minimum required return on average operating assets. The company's minimum required rate of return is 20%. The following data are for the most recent year of operations: Sales$36,980,000 Net operating income$3,058,960 Average operating assets$8,500,000 The company's minimum required rate of return 14% The division's residual income is closest to: Multiple Choice. 2.How do we show equilibrium graphically? 2. $2,808,960 b. If the division's average operating assets last year were $450,000, then the division's residual income for last year was .. Cabal Products is a division of a major corporation. a. Last year the division had total sales of $12,310,000, net operating income of $720,000, and average operating assets of $4,000,000. The companys tax rate was 40%. (Note: Round all answers to two decimal places.) Last year the division had total sales of $36,160,000, net operating income of $2,892,800, and average operating assets of $8,000,000. Compute the operating leverage based on the given income statement. = Contribution Margin / Sales Required: A. 25% C. 33% D. 40%. If expenses could be reduced by 3,450,000 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on investment for the Consumer Products Division? You have been asked to analyze the possible reasons the Specialty Products Division manager rejected the new product line. Solved Dacker Products is a division of a major corporation. - Chegg The following data are for the most recent year of operations: Sales Net operating income Average operating assets The company's minimum required rate of return $38,280,000 $ 3,708,960 $ 9,800,000 163 The division's margin used to compute ROI is closest to: Multiple Choice 0 37.8% 0 9.7% 0 . The company's minimum required rate of return is 12%. Answered: Dacker Products is a division of a | bartleby Residual income = Operating income - (Operating assets * Required rate of return), Become a Study.com member to unlock this answer! During the current year. A projected income statement for the new product line is as follows: The Specialty Products Division currently has 27,000,000 in invested assets, and Last Resort Industries Inc.s overall return on investment, including all divisions, is 10%. Numerator True or False, Opportunity costs represent costs that can be reduced by effective management of operations. True or False, Fixed costs may be relevant in a decision. The company. Ravena Labs., Inc. makes a single product which has the following standards: Direct materials: 2.5 ounces at $20 per ounce Direct labor: 1.4 hours at $12.50 per hour Variable manufacturing overhead: Ferrar Corporation has two major business segments-Consumer and Commercial. True or False, If investment funds are limited, the net present value of one project should not be compared directly to the net present value of another project unless the initial investments in these projects are equal. You are meeting with your new remote team for the first time. Get access to this video and our entire Q&A library, What Is Residual Income? 25% C. 33% D. 40%. The new machine would replace some old equipment that would be sold for scrap now, yielding $21,300. What is, Gilde Industries is a division of a major corporation. TARDIS has the capacity to produce 100,000 Sonic Screwdrivers each year. The company's minimum required rate of return is 14%. 5. Margin? The division's margin is closest to: (a) 28.4% (b) 22.6% (c, Coolbrook company has the following information avaiable for past year. What was Swift Company's minimum required rate of return last year? Silencer Company Sells A Single Product, Mufflers For Leaf Blowers. The 90 The division's return on investment (ROI) is closest to: The following data are for the Akron Division of Consolidated Rubber, Inc.: For the past year, the margin used in ROI calculations was: The Consumer Products Division of Goich Corporation had average operating assets of $1,300,000 and net operating income of. True or False, The cost of capital is the average rate of return that the company earns on its investments. The company's tax rate is 30%. The following data are for the most recent year of operations: Sales $ 36,480,000 Net operating income $ 2,808,960 Average operating assets $ 8,000,000 The company's minimum required rate of return 16 % The division's residual income is closest to: Multiple Choice a. Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested assets of 180,000, and sales of 720,000. Last year the division had total sales of $10,400,000, net operating income of $540,800, and average operating assets of $2,392,000. The company's minimum required rate of return is 12%. A: ROI stands for return on investment that shows the return earned by the company on the investment. Calculate Xenolds weighted average cost of capital. Dacker Products is a division of a major corporation. a; an The residual income is the residue of net income after deducting an amount equivalent of cost of using the assets of the company funded by finance providers. The division's, Cabal Products is a division of a major corporation. The following data are for the most recent year of operations: Sales$ 37,880,000Net operating income$ 3,508,960Average operating assets$ 9,400,000The company's minimum required rate of return14% The division's residual income is closest to: = $245,000 - $58,800 6. 20.6% B. (Round percentage your answer to 2 decimal places. Residual income The Commercial Division of Galena Company has operating income of 12,680,000 and assets of 74,500,000. The company's minimum required rate of return is 13%. The company's minimum required rate of return is 12%. Dacker Products is a division of a major corporation. Dacker Products is a division of a major corporation - YouTube At what selling price per unit would the company be as well off as if it just sold the calculators in their present condition? What is the sales margin? Calculate any changed ratios (round to four significant digits). Last year the division had total sales of $20,070,000, net operating income of $1,063,710, and average operating assets of $4,415,400. The division's residual income is closest to: A: Residual Income Total assets were $470 million, current liabilities were $104,000,000, and $72,000,000 of the current liabilities are noninterest bearing. acc 17.docx - Dacker Products is a division of a major corporation. The Understand what is residual income. 17.4% b. The simple rate of return on the investment is closest to (Ignore income taxes. The company estimates that 60% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. an; a True or False, A complete income statement need not be prepared as part of a differential cost analysis. Cost of Goods sold = $ 800000 Eevee Company reported a contribution margin of 70,000 for Sylveon, A: Introduction:- Last year the division had total sales of $23,800,000, net operating income of $2,903,600, and average operating assets of $7,000,000. 2.How do we show equilibrium graphically? Last year the division had total sales of $21,300,000, net operating income of $575,100, and average operating assets of $5,000,000. 5.6% C. 21.8, The Consumer Products Division of Weiter Corporation had average operating assets of $570,000 and net operating income of $65,100 in March. Last year, the division had total sales of $25,540,000, net operating income of $1,277,000, and average operating assets of $7,151,200. The unit product cost is $21, computed as follows: Data for each division for last year are as follows (numbers in thousands): The income tax rate for Xenold, Inc., is 40 percent. The following data are for the most recent year of operations: The company's minimum required rate of return14%. Residual income can be defined as a remaining income left with the company after deducting the expenses made on the capital expenditures from the operating income. The company requires a minimum pretax return of 9% on all investment projects. 3. Last year the division had total sales of $16,260,000, net operating income of $1,040,640, and average operating assets of $3,902,400. The division's margin used to compute ROI is closest to: Learn residual income definition and residual income formula. 37,080,000 Net operating income $ 3,108,960 Average operating We all laughed at the joke about_ honest man, even thou Average operating assets C Company had the following results last year: Net operating income $1,080 Turnover 2 ROI 9% C Company's average operating assets were _____. Direct materials $ 6 Identify the articles that correctly complete the following sentence. ROI = Earnings * 100/Average operating assets, A: Break even Sales=FixedcostsxSalesSales-VariableCosts, A: solution : $119,300 in May. If sales revenues are 20 percent greater than expected, what is the percentage increase in profits? The company's minimum required rate of return is 13%. The company's minimum required rate of return is 12%. entertainment, news presenter | 4.8K views, 28 likes, 13 loves, 80 comments, 2 shares, Facebook Watch Videos from GBN Grenada Broadcasting Network: GBN News 28th April 2023 Anchor: Kenroy Baptiste. The following information relates to last year's operations at Swift Company: Residual Income $170,000, Net Operating Income $180,000, Sales $500,000, Average Operating Assets $ 100,000. The company, Cabell Products is a division of a major corporation. a; an Average Operating, A: Residual income is the excess net income over the minimum required rate of return Xenolds total capital employed is 5.04 million (2,600,000 for the Home Division, 1,700,000 for the Restaurant Division, and the remainder for the Specialty Division). Dacker Products is a division of a major corporation. Dacker Products is a division of a major corporation. The following The following data are for the most recent year of operations: Sales Net operating income Average operating assets The company's minimum required rate of return $37,580,000 $ 3,358,960 $ 9,100,000 14% The division's margin used to compute ROI is closest to: Multiple Choice 33.2% O . The following data are for the last year of operations: Sales $19,080,000 Net operating income $591480 Average operating assets $6,000,000 Minimum required rate of return 12% The division's margin is c, Daab Products is a division of a major corporation. Solved Dacker Products is a division of a major corporation - Chegg = NET OPERATING INCOME - (AVERAGE OPERATING ASSETS X MINIMUM REQUIRED RATE OF, A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for, A: Return on investment (ROI) is a performance statistic used to evaluate the efficiency or, A: ROI means Return on investment by the company which says that how much net income is earned on, A: Return on investment = Net operating income / Average operating assets, A: Return on investment represents the profit earned on an investment made. Last year the division had total sales of $18,690,000, net operating income of $934,500, and average operating assets of $5,233,200. Compute ROI. The company's minimum r, Brandon, Inc. has provided the following data for last year's operations: Sales: $100,000 Net operating income: $6,000 Average operating assets: $40,000 Stockholders' equity: $25,000 Minimum required rate of return: 10% Brandon's residual income is: a. The following data are for the most recent year of operations: $38,380,000 $ 3,758,960 $ 9,900,000 Sales Net operating income Average operating assets The company's minimum required rate of return 15% The division's margin used to compute ROI is closest to: Multiple Choice 35.6% 38.0% 25.8% 9.8% 3.Share an example from your own experience when the market c. Determine the estimated return on investment for the new product line. CONCEPTUAL CONNECTION Briefly explain the meaning of ROI. Income, A: Investment center profit margin = Income / Sales *100, A: The turnover is calculated as : The following data are for the most recent year of operations: Sales Net operating income Average operating assets The company's minimum required rate of return $37,580,000 $ 3,358,960 $ 9,100,000 14% The division's margin used to compute ROI is closest to: Multiple Choice 33.2% O 36.9% o 24.2% 8.9%. Average operating assets b. True or False, A shorter payback period does not necessarily mean that one investment is more desirable than another. Require, Cabal Products is a division of a Major Corporation. Sales $38,000,000 Net Operating Income $2,800,000 Average Operating Assets $15,000,000 The com, Gaal Industries is a division of a major corporation. The company's minimum required rate, Eban Wares is a division of a major corporation. During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of $5,500,000 and average capital assets of $12,000, 000. 3. 2. Round percentages to one decimal place and the investment turnover to two decimal places. The following data are for the most recent year of operations: Sales$ 37,880,000Net operating income$ 3,508,960Average operating assets$ 9,400,000The company's minimum required rate of return14%. The company's minimum required rate of return is 16%. The company has a soccer ball that sells for $30 per ball. Turnover = Sales A. 4. Suppose sales revenues exceed the estimated amount on the income statement by 612,000. 2. a. The division's turnover is closest to: Multiple Choice O 10.86 O 3.76 O 0.35 O 2.89 Last year the division had total sales of $23,100,000, income of and average operating assets of $5,500,000. The division's, Cabal Products is a division of a major corporation. Last year the division had total sales of $26,110,000, net operating income of $1,801,590, and average operating assets of $7,000,000. Below is selected prior year data from the Company. (Round to three significant digits.) When a company is cash poor, a project with a short payback period but a low rate of return may be preferred to a project with a long payback period and a high rate of return. The firm uses two departments to manufacture these jerseys: the Cutting Department and the Sewing, Allocation of OH Costs - Waterfall, Ltd.; Background information Waterfall, Ltd. manufactures custom basketball jerseys for professional basketball teams. If expenses could be reduced by 3,450,000 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on investment for the Consumer Products Division? See Answer Question: Dacker Products is a division of a major corporation. Last year, the division had total sales of $12,880,000, net operating income of $837,200, and average operating assets of $2,833,600. = INCOME FROM OPERATION - (MINIMUM RATE OF RETURN X INVESTED, A: Return on investment is the ratio of net income over investment which is used to evaluate the income, A: Return on investment = Net operating income / Average operating assets, A: Residual Income = Income from Operations -Invested Assets x Minimum rate of return 2. (Note: Round answer to two decimal places.) Prepare a new income statement to support your answer. The division's residual income is closest to: Cabell Products is a division of a major corporation. Return On Investment =NetOperatingIncomeAverageOperatingAssets Residual value is a excess, A: Residual income = Income from operations - (Assets * Minimum acceptable return on assets), A: Residual income is the income earned over and above income at minimum required rate of return level., A: Reportable Segment: Reporting financial and descriptive information regarding reportable segments is, A: CALCULATION FOR RESIDUAL INCOME : The following information is available for our company for the current year: Operating income $75,000 Average total assets $500,000 Net sales $750,000 Required rate of return 12% Calculate residual income. Last year the division had total sales of $27,615,900, net operating income of $3,866,226, and average operating assets of $7,081,000. Solved Dacker Products is a division of a major corporation. - Chegg 1. Last year the division had total sales of $8,790,000, a net operating income of $428,400, and average operating assets of $3,000,000. The compan, Gilde Industries is a division of a major corporation. Justify your choice, 1.Explain where the market equilibrium occurs. Data concerning the most recent year appears below: Sales $17,400,000 Net operating income $870,000 Average operating assets $4,000,000 What is the division's return on investment (ROI)? Createyouraccount, The division's residual income is $1,748,960 (d). The company's minimum required rate of return is 14%. The following data are for the latest year of operations: Sales $5,820,000, Net operating income $436,500, Average operating assets $2,000,000. Dacker Products is a division of a major corporation. CONCEPTUAL CONNECTION Briefly explain the meaning of ROI. First week only $4.99! To drive customers to your website, you need to create, Multiple Choice Question Profit Margin Last year the division had total sales of $11,440,000, net operating income of $686,400, and average operating assets of $2,402,400. As an alternative, the calculators can be sold in their present condition for $40,000. The division's residual income is closest to $2,192,960, Residual income=net income-(average operating assets*required rate of return), residual income =$3,508,960-($9,400,000*14%). Last year the division had total sales of $21,300,000, net operating income of $575,100, and average operating assets of $5,000,000. The following formula used to calculate Residual income as follows under:- a. Answered: Dacker Products is a division of a | bartleby Cash Vs Debit Card 5. This, A: Residual income = Operating income - (Average invested assets*Minimum required rate of return), A: Solution: The division, Dickonson Products is a division of a major corporation. average Operating Assets is, A: Profit Margin = Income from Operations / Sales Xenold, Inc., manufactures and sells cooktops and ovens through three divisions: Home, Restaurant, and Specialty. Return on Investment = Net income / Average invested asset Calculate the residual income for the Avila Division. True or False, A vertically integrated company is less dependent on its suppliers than a company that is not vertically integrated. 3. The divisional manager has decided to increase the advertising budget by 140,000 and cut the average selling price to 200. was not in equilibrium for a product or service. Start your trial now! The company's required rate of return is 18%. Given Return on Investment =20% Inspection Time is generally considered to be value-added time. $ 3,758,960 Last year the division had total sales of $17,540,000, net operating income of $1,438,280, and average operating assets of $4,735,800. Last year the division had total sales of $13,420,000, net operating income of $1,261,480, and average operating assets of $2,684,000. The beet fiber can be sold as is for $30 or processed further for $29 to make the end product industrial fiber that is sold for $77. Xenold, Inc., manufactures and sells cooktops and ovens through three divisions: Home, Restaurant, and Specialty. The following data are for the latest year of operations. (2) Cabell Products is a division of a major corporation. The compan, Cabal Products is a division of a major corporation. The minimum, A: Formula; Following is thecalculation Division Margin used to compute ROI closest to for Dacken as follows- Margin = Net Opreat, Dacker Products is a division of a major corporation. If the Accounts Payable Department is treated as a service department, what is Division As operating income? Cabell Products is a division of a major corporation. The division's margin is closest to A) 39.7% B) 47.6% C) 7.9% D), Iba Industries is a division of a major corporation. During the most recent month, the. Will this improve the divisions financial situation? a.Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the International Division, assuming that $20,000,000 of assets have been invested in the International Division. Data concerning the most recent year appears below: Sales $18,080,000 Net operating income $940,160 Average operating assets $4,810,000 The division's turnover is closest to: A. For, A: Break even Sales=FixedcostsxSalesSales-VariableCosts, A: Rate of return on investment = Net Income / Investment in assets. Required: 1. What if operating income for the Small Appliances Division was 2,000,000? 2.09. / Dacker Products is a division of a major corporation. b. What is the residual income? Carl Warren, Ph.d. Cma William B. Tayler, Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger. The company's minimum required rate of return He pays$4,424 in state taxes annually based on a state tax rate of 4%. 4.Explain why the market was out of equilibrium (what caused it to be out of equilibrium) and what needed to be done to bring the market back to equilibrium. Comment on the performance of each of the divisions. The following data are for the most recent year of operations: The company's minimum required rate of return 15%. Compute the margin and turnover ratios for last year. Residual Income, A: Contribution margin for Business Division's = Sales - Variable expenses The following data are for the most recent year of operations: Sales$36,480,000 Net operating income$2,808,960 Average operating assets$8,000,000 The company's minimum required rate of return 16% The division's return on investment (ROI) is closest to: 35.1% Turnover=NetoperatingincomeAverageoperatingassets, A: Break even sale is the amount which covers all the costs incurred by an entity but do not result in, A: Residual income for the division = Net income - average invested capital x Cost of capital, A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for. This site is using cookies under cookie policy . Harry Parsons' annual salary is $112,600. A variable interval schedule is one in which a response is reinforced only after an/a, b. unpredictable number of responses are made, c. specified number of responses are made. The firm uses two departments to manufacture these jerseys: the Cutting Department and the Sewing. Required: 1. These actions will increase sales revenues by 1 million. Turnover 1.5 Residual income ? . The annual depreciation on the new machine would be $88,300. Chapter 11 managerial accounting help Flashcards _ Quizlet.pdf, Waterfall, Ltd. manufactures custom basketball jerseys for professional basketball teams. RESIDUAL INCOME FOR DIVISION = NET INCOME - AVERAGE INVESTED CAPITAL * COST OF CAPITAL . EVA = NOPAT - WACC x Capital Invested. The division's, Gilde Industries is a division of a major corporation. If these calculators are upgraded at a total cost of $100,000, they can be sold for a total of $160,000. a) What is t, Ash Wares is a division of a major corporation. Agustin Industries is a division of a major corporation. Average operating assets b. The division's minimum required rate of return is 10%. an; an $67,500 b. Dacker Products is a division of a major corporation. Margin = NOI/Sales True or False, In calculating the payback period where new equipment is replacing old equipment, any salvage value to be received on disposal of the old equipment should be deducted from the cost of the new equipment. $38,380,000 Sales, A: "Since you have posted a question with multiple sub-parts, we will solve first three subparts for. Sales $3,500,000 Net operating income $280,000 Average operating assets $1,500,000 Minimum required rate of return 16% A. Rotan Corporation keeps careful track of the time required to fill orders. The following data are for the Akron Division of Consolidated Rubber, Inc.: Sales Net operating income Average operating assets Stockholders' equity Residual income $760,000 $ 46,000 $260,000 $ 76,000 $ 16,000 For the past year, the margin used in ROI calculations was: Multiple Choice 6.05% O O 8.72% O 10.00% 8.16% C. Experts are tested by Chegg as specialists in their subject area. The company's minimum required rate of return is 12%. Determine the Specialty Products Division managers bonus for the past year. Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be: The Tolar Corporation has 400 obsolete desk calculators that are carried in inventory at a total cost of $576,000. Dacker Products is a division of a major corporation. The following What is the div, Cabal Products is a division of a major corporation. Margin, Turnover, Return on Investment Pelak Company had sales of 25,000,000, expenses of 17,500,000, and average operating assets of 10,000,000. The following data are for the most recent year of operations: Compute the margin of safety in dollars based on the given income statement. A. $25,800 b. CONCEPTUAL CONNECTION Comment on why the ROI for Elway Company is relatively high (as compared to the lower ROI of a typical manufacturing company). Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided. . an; a Required: 1. Net operating income Xenold, Inc., has been in business for over 15 years and is considered a relatively stable stock, despite its link to the cyclical construction industry. At the end of 9 years, the machine would have a salvage value of $20,500. (Round your answers to four significant digits.) Course Hero is not sponsored or endorsed by any college or university. It analysis the organization's ability to increase its return on equity. The In order to best encourage their individual performance development, what should yo Data concerning the most recent year appears below: Dacker Products is a division of a major corporation. a. Last year the division had total sales of $23,870,000, net operating Income of $1,479,940, and average operating assets of $5,012,700. What is the residual income of the new project? A. Compute the Division's Profit Margin ROI and residual income are tools used to evaluate managerial performance in investment centers. The following data are for the latest year of operations: Sales $14,720,000 Net operating income $1,000,960 Average operating assets $4,000,000 The, Eacher Wares is a division of a major corporation. The division's, Gilde Industries is a division of a major corporation. where, Check out a sample Q&A here See Solution star_border Compute the ROI and the margin and turnover ratios for each year for the Furniture Division. 2. Annual incremental sales would be $520,000 and annual cash operating expenses would be $300,000. An outside supplier has offered to provide the annual requirement of 7,200 of the parts for only $13 each. = 5.77%, A: Cost accounting is the branch of accounting that inspects the cost structure of a business.
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