1) Guerlane Fragrance Corporation has a perfume division, Essense, and a cologne division, Karisma. The following information relates to last year's operations at each division. The minimum required rate of return is the same for both divisions. Essense Karisma Sales $360,000 (d) Average operating assets $120,000 (e) Net operating income $10,000 Margin (b) Turnover (c) 2.5 Return on investment (ROI) 20% (f) Residual income $6,000 Required: Compute the unknown quantities above [(a) through (g)]. SHOW YOUR COMPUTATIONS.

Dickonson Products is a division of a major corporation. The following data are for the last year of operations: Sales... $16,640,000 $399,360 Net operating income Average operating assets $4,000,000 The company's minimum required rate of return. 18% The division's residual income is closest to: Select one: a. $(320,640) b. $1,119,360 c. $399,360 d. $(2,595,840)

Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of 7.5 percent. Selected financial information (in thousands of dollars) for the first year of business follows: Sales revenue Income Divisional assets (beginning of year) Current liabilities (beginning of year) RAD expenditures Carolinas $1,600 160 1,000 240 800 Northeast $5,500 Complete this question by entering your answers in the tabs below. 432 1,500 240 720 R&D is assumed to benefit two periods. All R&D is spent at the beginning of the year. Required: a-1. Evaluate the performance of the two divisions assuming Lasky Manufacturing uses economic value added (EVA). a-2. Which division had the better performance?

Dacker 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:

Adams Cough Drops operates two divisions. The following information pertains to each division for Year 1. \table[[, Division A, Division B], [Sales, $203,000, $78,000

Terra Company has two divisions, the Retail Division and the Wholesale Division. The following information was gathered for the two divisions for the current year:   Retail Division Wholesale Division Operating income $ 2,750,000 $ 6,250,000 Operating assets $ 18,500,000 $ 38,500,000 Terra Company has set a target return on investment (ROI) of 14% for both divisions. Which of the following statements is accurate? Residual income for the wholesale division was $160,000. Residual income for the wholesale division was $860,000. Residual income for the retail division was $860,000. None of these answers are correct.

Ceder Products is a division of a major corporation. Last year the division had total sales of $21.520,000, net operating income of $538,000, and average operating assets of $8,000,000. The company's minimum required rate of return is 18%.    The division's turnover is closest to: A. 2.52 B. 0.07 C. 40.00 D. 2.69

The following is partial information for Charleston Company’s most recent year of operation. It manufactures lawn mowers and categorizes its operations into two divisions: Bermuda and Midiron.    Bermuda Division   Midiron Division Sales revenue   ?     $ 600,000   Average invested assets $ 2,500,000       ?   Net operating income $ 160,000     $ 150,000   Profit margin   20 %     ?   Investment turnover   ?       0.16   Return on investment   ?       ?   Residual income $ 40,000     $ (30,000 )   Required:1. Without making any calculations, determine whether each division’s return on investment is above or below Charleston’s hurdle rate.2. Determine the missing amounts in the preceding table.3. What is Charleston’s hurdle rate?4-a. Suppose Charleston has the opportunity to invest additional assets to help expand the company’s market share. The expansion would require an average investment of $2,800,000 and would generate $140,000 in additional income. Calculate…

Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of 7.5 percent. Selected financial information (in thousands of dollars) for the first year of business follows:   Carolinas Northeast Sales revenue $ 900 $ 4,200 Income 170 372 Divisional assets (beginning of year) 1,000 1,500 Current liabilities (beginning of year) 170 170 R&D expendituresa 450 370 aR&D is assumed to benefit two periods. All R&D is spent at the beginning of the year. Required: a-1. Evaluate the performance of the two divisions assuming Lasky Manufacturing uses residual income. a-2. Which division had the better performance?

Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of 7.5 percent. Selected financial information (in thousands of dollars) for the first year of business follows:   Carolinas Northeast Sales revenue $ 900 $ 4,200 Income 170 372 Divisional assets (beginning of year) 1,000 1,500 Current liabilities (beginning of year) 170 170 R&D expendituresa 450 370 aR&D is assumed to benefit two periods. All R&D is spent at the beginning of the year. Required: a-1. Evaluate the performance of the two divisions assuming Lasky Manufacturing uses economic value added (EVA). a-2. Which division had the better performance?