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言 ANot secure ezto.mheducation.com/hm.tpx Manyops, Inc., is a manufacturing firm that has experienced strong competition in its traditional business. Management is considering joining the trend to the "service economy" by eliminating its manufacturing operations and concentrating on providing specialized maintenance services to other manufacturers Manyops, Inc., has had a target ROI of 17% on an asset base that has averaged $8 million. To achieve this ROI, average total asset turnover of 2 was required. If the company shifts its operations from manufacturing to providing maintenance services, it is estimated that average total assets will decrease to $5 million Management of Required a. Calculate net income, margin, and sales required for Manyops, Inc., to achieve its target ROl as a manufacturing firm. (Enter your "Sales" and "Net income" answers in millions (i.e., 10,000,000 should be entered as 10). Do not round intermediate calculations. Round your answers to 2 decimal places.) Net income Margin Sales million million b·Assume that the average margin of maintenance service firms is 2.7%, and that the average ROI for such firms is also 16%. Calculate the net income, sales, and total asset turnover that Manyops, Inc., will have if the change to services is made and the firm is able to earn an average margin and achieve an 16% RQI (Enter your "sales" and "Net income" answers in millions i.е., 10,000,000 should be entered as 10): Do not round intermediate calculations. Round your answers to 2 decimal places.) Net income Sales Turnover million million

言 ANot secure ezto.mheducation.com/hm.tpx Manyops, Inc., is a manufacturing firm that has experienced strong competition in its traditional business. Management is considering joining the trend to the "service economy" by eliminating its manufacturing operations and concentrating on providing specialized maintenance services to other manufacturers Manyops, Inc., has had a target ROI of 17% on an asset base that has averaged $8 million. To achieve this ROI, average total asset turnover of 2 was required. If the company shifts its operations from manufacturing to providing maintenance services, it is estimated that average total assets will decrease to $5 million Management of Required a. Calculate net income, margin, and sales required for Manyops, Inc., to achieve its target ROl as a manufacturing firm. (Enter your "Sales" and "Net income" answers in millions (i.e., 10,000,000 should be entered as 10). Do not round intermediate calculations. Round your answers to 2 decimal places.) Net income Margin Sales million million b·Assume that the average margin of maintenance service firms is 2.7%, and that the average ROI for such firms is also 16%. Calculate the net income, sales, and total asset turnover that Manyops, Inc., will have if the change to services is made and the firm is able to earn an average margin and achieve an 16% RQI (Enter your "sales" and "Net income" answers in millions i.е., 10,000,000 should be entered as 10): Do not round intermediate calculations. Round your answers to 2 decimal places.) Net income Sales Turnover million million

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter11: Strategic Cost Management
Section: Chapter Questions
Problem 9E
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言 ANot secure ezto.mheducation.com/hm.tpx Manyops, Inc., is a manufacturing firm that has experienced strong competition in its traditional business. Management is considering joining the trend to the "service economy" by eliminating its manufacturing operations and concentrating on providing specialized maintenance services to other manufacturers Manyops, Inc., has had a target ROI of 17% on an asset base that has averaged $8 million. To achieve this ROI, average total asset turnover of 2 was required. If the company shifts its operations from manufacturing to providing maintenance services, it is estimated that average total assets will decrease to $5 million Management of Required a. Calculate net income, margin, and sales required for Manyops, Inc., to achieve its target ROl as a manufacturing firm. (Enter your "Sales" and "Net income" answers in millions (i.e., 10,000,000 should be entered as 10). Do not round intermediate calculations. Round your answers to 2 decimal places.) Net income Margin Sales million million b·Assume that the average margin of maintenance service firms is 2.7%, and that the average ROI for such firms is also 16%. Calculate the net income, sales, and total asset turnover that Manyops, Inc., will have if the change to services is made and the firm is able to earn an average margin and achieve an 16% RQI (Enter your "sales" and "Net income" answers in millions i.е., 10,000,000 should be entered as 10): Do not round intermediate calculations. Round your answers to 2 decimal places.) Net income Sales Turnover million million
Transcribed Image Text:言 ANot secure ezto.mheducation.com/hm.tpx Manyops, Inc., is a manufacturing firm that has experienced strong competition in its traditional business. Management is considering joining the trend to the "service economy" by eliminating its manufacturing operations and concentrating on providing specialized maintenance services to other manufacturers Manyops, Inc., has had a target ROI of 17% on an asset base that has averaged $8 million. To achieve this ROI, average total asset turnover of 2 was required. If the company shifts its operations from manufacturing to providing maintenance services, it is estimated that average total assets will decrease to $5 million Management of Required a. Calculate net income, margin, and sales required for Manyops, Inc., to achieve its target ROl as a manufacturing firm. (Enter your "Sales" and "Net income" answers in millions (i.e., 10,000,000 should be entered as 10). Do not round intermediate calculations. Round your answers to 2 decimal places.) Net income Margin Sales million million b·Assume that the average margin of maintenance service firms is 2.7%, and that the average ROI for such firms is also 16%. Calculate the net income, sales, and total asset turnover that Manyops, Inc., will have if the change to services is made and the firm is able to earn an average margin and achieve an 16% RQI (Enter your "sales" and "Net income" answers in millions i.е., 10,000,000 should be entered as 10): Do not round intermediate calculations. Round your answers to 2 decimal places.) Net income Sales Turnover million million
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