Blue Spruce accumulates the following data for its North Division, an investment center, for the current year. Contribution margin Controllable fixed costs Average operating assets $186,000 $113,550 $700,000 Compute the ROI. (Round answer to two decimal places (e.g., 15.25%).) ROI %
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- For its three investment centres, National Inc. accumulates the following data: Centre I Centre II Centre III Sales $2,000,000 $4,000,000 $4,000,000 Operating income 1,300,000 1,840,000 2,880,000 Average Operating Assets 5,000,000 8,000,000 12,000,000 Minimum required return 15% 20% 25% 1.) What is the return on investment (ROI) for Centre I? a. 20% b. 23% c. 24% d. 26% 2.)The residual income (RI) for Centre III is a. $150,000 b. $550,000 c. $240,000 d. -$120,000 3.)The ranking of the centres based on return on investment (ROI) with the best performer listed first is as follows a. Centre I, Centre II, Centre III b. Centre I, Centre III, Centre II c. Centre III, Centre II, Centre I d. Centre II, centre III, Centre I 4.)What is the return on investment (ROI) for Centre II? a. 20% b. 23% c. 24% d. 26%Golden Goodness (GG) has an investment center that had the following data: Operating Income $28,000 Sales $350,000 Invested assets $175,000 PMB has set a minimum acceptable rate of return at 14%. Using the information, answer the following questions. You must include what type of number it is (%, $, etc.) Part A: What is the residual income? Part B: Show calcualtions on how you got answerKnowledge Check East Division of Blue Spruce Anchors provided the following information: Contribution margin Controllable margin Average operating assets Minimum rate of return Return on investment $890,000 $395,900 $2,140,000 Compute the return on investment and the residual income. (Round return on investment answer to two decimal places (e.g., 15.25%).) Residual income 9 % %
- Using the following data, estimate the new Return on Investment if there is a 7% increase in sales - with average operating assets as the base. Sales $2,354,696 Contribution margin 44% Controllable 339,947 fixed costs Average operating $5,230,380 assets Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.For its three investment centers, Blue Spruce Company accumulates the following data: II II Sales $2,520,000 $5,040,000 $5,040,000 Controllable margin 1,827,000 2,620,800 4,662,000 Average operating assets 6,300,000 10,080,000 12,600,000 Compute the return on investment (ROI) for each center. II II The return on % % investmentUsing the following data, estimate the new Return on Investment if there is a 8% increase in sales - with average operating assets as the base. Sales Contribution margin Controllable fixed costs $3,646,059 45% 266,167 Average operating $5,897,345 assets
- Given the following data: Average operating assets $ 1,116,000 Total liabilities $ 167,400 Sales $ 837,000 Contribution margin $ 502,200 Net operating income $ 167,400 Return on investment (ROI) is: Multiple Choice 20.0% 15.0% 60.0% 45.0%For its three investment centers, Monty Company accumulates the following data. 11 $1,960,000 $3,920,000 Controllable margin 1,470,000 2,116,800 Average operating assets 4,900,000 7,840.000 Sales Compute the return on investment (ROI) for each center. Return on investment Madla % ||| $3,920,000 3,724,000 9,800,000 % 111The following results pertain to an investment center. Sales $ 1,577,200 Variable costs 820,000 Traceable fixed costs 114,000 Average investment 960,000 Divisional cost of capital (discount rate) 10 % How much is the return on investment (ROI) for this investment center?
- Kyle Corporation provides the following information for the Product Division and Service Division for the year. Product Division Service Division 420,000 $ 650,000 195,000 245,000 640,000 610,000 14.0% 14.0% Net sales Operating income Average total assets Target rate of return $ Requirement 1. Calculate the return on investment for each division. (Enter answers as a percent rounded to the nearest hundredth percent, X.XX%) The return on investment for the Product Division is The return on investment for the Service Division is Requirement 2. Which division has the highest ROI? % % Requirement 3. Calculate the residual income for each division. (Round answers to the nearest whole dollar.) The residual income for the Product Division is The residual income for the Service Division is Requirement 4. Which division has the highest residual income?Mitsu Division has the following results for the year: Revenues $1,080,000Variable expenses 440,000Fixed expenses 400,000Total divisional assets are $1,600,000. The company's minimum required rate of return is 14 percent. What is the residual income for Scottso?Alpha Corporation recorded operating data for its Omega division for the year. Alpha requires its return to be 10%. Sales- P700,000; Controllable margin- P80,000; Total average assets- P2,000,000; Fixed costs- P50,000. What is the ROI for the year?