Johnson Company has two sources of funds: long-term debt and equity capital. Johnson Company has profit centers in the following locations with the following net incomes and total assets:     Net Income Assets Las Vegas   $1,260,000 $4,000,000 Dallas   1,500,000 8,000,000 Tampa   2,340,000 12,000,000   a. Calculate ROI for each profit center and rank them from highest to lowest based on ROI. Round ROI to the nearest whole percentage.   ROI Rank Las Vegas Answer   Answer123   Dallas Answer   Answer123   Tampa Answer   Answer123     b. Calculate residual income for each profit center based on a desired ROI of 5% and rank them from highest to lowest based on residual income.   ROI Rank Las Vegas Answer   Answer123   Dallas Answer   Answer123   Tampa Answer   Answer123

What is the Rate of Return on Investment (ROI) for Stevenson Corporation, given the following info: Invested Assets = $275,000 Sales $330,000 Income from Operations = $49,500 Desired minimum rate of return = 7.5% O 10.0% 18.0% 8.0% 7.5%

Estate has an ROI of 19.4% based on revenues of $570,000. The residual income is $19,950 and the investment turnover is 2. What is the hurdle rate?   Multiple Choice   19.40%   24.80%   9.70%   12.40%

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For its three investment centers, Ayayai Company accumulates the following data: Sales Controllable margin Average operating assets $2,480,000 1,736,000 6,200,000 The return on investment 11 $4,960,000 2.480,000 9,920.000 Compute the return on investment (ROI) for each center. 25 % 111 $4,960,000 4,464,000 12.400.000 11 21.43 m 24 96

A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: (Loss amounts should be indicated by a minus sign. Round your percentage answers to nearest whole percent and other amounts to whole dollars.) Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return: Percentage Dollar amount Residual income $ $ A 470,000 160,000 15 % 16 % $ $ $ Company B 680,000 43,000 19 % 57,000 % C $ 560,000 $ 145,000 $ % 10 % 5,000

For its three investment centers, Gerrard Company accumulates the following data: II III Sales $1,900,000 $4,075,000 $4,069,000 Controllable margin Average operating assets 912,240 1,838,390 4,209,800 5,068,000 7,993,000 12,028,000 The centers expect the following changes in the next year: (I) increase sales 14%; (II) decrease controllable fixed costs $376,000; (III) decrease average operating assets $491,000. Compute the expected return on investment (ROI) for each center. Assume center I has a contribution margin percentage of 70%. (Round ROI to 1 decimal place, e.g. 1.5.) I II III The expected return on investment % %

Kelfour Enterprises has divided its operations into two divisions. Relevant accounting data for each division is as follows:  Divisions Sales   Operating Assets   Operating Income Western Division $ 330,000     $ 280,000     $ 33,000   Eastern Division $ 480,000     $ 330,000     $ 34,500     Kelfour has an additional $68,000 of funds to invest. The manager of the Western Division believes that she can invest the funds at a rate of return (ROI) of 23.00% while the manager of the Eastern Division has found a new investment opportunity that is expected to yield a 21.00% ROI. Kelfour uses residual income (RI) to evaluate managerial performance. The company wide desired ROI is 19.00%. Based on this information   Multiple Choice   The manager of the Western Division would accept the $68,000 additional investment opportunity because it would increase the Division's RI by $2,720.   The manager of the Eastern Division would accept the $68,000 additional investment…

Return on Investment and Residual Income Johnson Company has two sources of funds: long-term debt and equity capital. Johnson Company has profit centers in the following locations with the following net incomes and total assets: Net Income Assets Las Vegas $1,260,000 $4,000,000 Dallas 1,500,000 8,000,000 Tampa 2,340,000 12,000,000 a. Calculate ROI for each profit center and rank them from highest to lowest based on ROI. Round ROI to the nearest whole percentage. ROI Las Vegas Dallas Tampa 0% 0% 0% Las Vegas $ Dallas Tampa b. Calculate residual income for each profit center based on a desired ROI of 5% and rank them from highest to lowest based on residual income. RI Rank Rank 0 0 0 ♦