King Mattresses sells both mattress sets and bed frames. Last quarter, total sales were $50,000 formattress sets and $25,000 for bed frames. Return on investment (ROI) was 10% for both divisions,while asset turnover (AT) was 5 for mattress sets and 2 for bed frames. What was the amount ofoperating profit for each division?
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King Mattresses sells both mattress sets and bed frames. Last quarter, total sales were $50,000 for
mattress sets and $25,000 for bed frames.
while asset turnover (AT) was 5 for mattress sets and 2 for bed frames. What was the amount of
operating profit for each division?
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- Assume NUBD produced and sold 5,000 units. At this level of activity, it produced a profit of P19,000. What was NUBD's sales price per unit?Required information Skip to question [The following information applies to the questions displayed below.] King Mattresses sells both mattress sets and bed frames. Last quarter, total sales were $70,000 for mattress sets and $45,000 for bed frames. Return on investment (ROI) was 15% for both divisions, while asset turnover (AT) was 3 for mattress sets and 3 for bed frames. Compute King Mattresses’s total return on sales (ROS) for the quarter.Fortunate Inc. is involved in retailing and has three profit centers classified as “East” and “West” and “South.” East Division sold 38,000 units during the year for a selling price of $25 each—These items cost $15 each and had $2.50 of variable selling expenses (sales commissions) that could be directly traced to the units. West Division sold 16,000 units during the year for a selling price of $27 each—These items cost $17 each and that had $3 of variable selling expenses (sales commissions) that could be directly traced to the units. South Division sold 42,000 units during the year for a selling price of $26 each—These items cost $16 each and had $2 of variable selling expenses (sales commissions) that could be directly traced to the units. Fixed Division Operating Costs that could be directly traced to the divisions were $160,000 for East Division and $95,000 for West Division, and $200,000 for South Division. There were $230,000 of Corporate Costs (which was $20,000 for…
- Jaffre Enterprises distributes a single product whose selling price is $16 and whose variableexpense is $11 per unit. The company’s fi xed expense is $16,000 per month.Required:I. Prepare a profit graph for the company up to a sales level of 4,000 units.II. . Estimate the company’s break-even point in unit sales using your profit graph.Develop a profit-and-loss statement for the Westgate division of North Industries. This division manufactures light fixtures sold to consumers through home improvement and hardware stores. Cost of goods sold represents 40% of net sales. Marketing expenses include selling expenses, promotion expenses, and freight. Selling expenses include sales salaries totaling $3 million per year and sales commissions (5% of sales). The company spent $3 million on advertising last year,and freight costs were 10% of sales. Other costs include $2 million for managerial salaries and expenses for the marketing function and another $3 million for indirect overhead allocated to the division. a. Develop the profit-and-loss statement if net sales were $20 million last year.b. Develop the profit-and-loss statement if net sales were $40 million last year.c. Calculate Westgate’s break-even sales.The following data are available for X Corp:Gross profit is 20% based on cost. Using ABC, compute the selling price of each unit of Product B?
- Assume a company sold 28,000 units last year and ncrease the sales commission by $2 per unit. What does this meanGabbe Industries is a division of a major corporation. Last year the division had total sales of $24,048,000, net operating income of $2,765,520, and average operating assets of $6,012,000. The company's minimum required rate of return is 17% Required: a. What is the division's margin? (Round your percentage answer to 2 decimal places.) b. What is the division's turnover? (Round your answer to 2 decimal places.) c. What is the division's return on investment (ROI)? (Round percentage your answer to 2 decimal places.) a. Margin b. Turnover c. Return on investment 96Gabbe Industries is a division of a major corporation. Last year the division had total sales of $33,667,200, net operating income of $4,679,741, and average operating assets of $7,014,000. The company's minimum required rate of return is 22%. Required: a. What is the division's margin? Note: Round your percentage answer to 2 decimal places. b. What is the division's turnover? Note: Round your answer to 2 decimal places. c. What is the division's return on investment (ROI)? Note: Round percentage your answer to 2 decimal places. a. Margin b. Turnover c. Return on investment
- Low Carb Diet Supplement Inc. has two divisions. Division A has a profit of $133,000 on sales of $2,010,000. Division B is able to make only $25,600 on sales of $300,000. a. Compute the profit margins (return on sales) for each division. (Input your answers as a percent rounded to 2 decimal places.) Division A Division B Profit Margin b. Based on the profit margins (returns on sales), which division is superior? O Division A Division BPedaci Corporation produces and sells a single product. Data concerning that product appear below: Assume the company's monthly target profit is $15,000. The unit sales to attain that target profit is closest to: 3,212B. 5,265C. 8,235D. 5,571 Assume the company's monthly target profit is $17,000. The dollar sales to attain that target profit is closest to: $387,392B. $635,069C. $671,925D. $993,313Pollux Company had the following income statement for last year: Sales $360,000 Less: Cost of goods sold 195,000 Gross margin $165,000 Less: Selling & administrative expense 78,600 Operating income $ 86,400 Beginning assets were $565,000 and ending assets were $597,000. What is ROI?