Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of 7.5 percent. Selected financialinformation (in thousands of dollars) for the first year of business follows:Sales revenueIncomeDivisional assets (beginning of year)Current liabilities (beginning of year)R&D expenditures aCarolinas$ 1,5001901,000230750Northeast$ 5,4003721,500230670aR&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 uses return on investment (ROI).a-2. Which division had the better performance?Complete this question by entering your answers in the tabs below.Req A1Req A2Evaluate the performance of the two divisions assuming Lasky uses return on investment (ROI).Note: Enter your answers as a percentage rounded to 1 decimal place (i.e., 32.1).DivisionsCarolinasNortheastROI%%

Step 1:Part (a) Formula of ROI (Return on investment): ROI=InvestmentIncome×100% East…

Answered: Lasky Manufacturing has two divisions:…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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a-2. which division had the better performance? east or west
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Samsun company operates with two divisions, sam and sun. The results of the operations last year showed the company earning a net operating income of P468,000 while allocating P1,040,000 ccommon fixed expenses. The contribution margin of Sam was P780,000 while contribution margin ratio for sun ws 40%. Sun was able to generate sales of P3,250,000, and its segment margin was P832,000. The segment margin for sam was: A. P676,000 B. 1,508,000 C. P208,000 D. P832,000
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Giardin Outdoors is a recreational goods retaller with two divisions: Online and Stores. The two divisions both use the services of the corporate Finance and Accounting (F and A) Department. Annual costs of the F and A Department total $5.2 million a year. Managers In the two operating divisions are measured based on division operating profits. The following selected data are available for the two operating divisions: Revenues (5000) $ 74,100 39,900 Online Stores Required: Determine the cost allocation if $3.8 million of the F and A costs are fixed and allocated on the basis of revenues, and the remaining costs, which are variable, are allocated on the basis of transactions. Note: Do not round Intermediate calculations. Enter your answers in dollars, not in millions or thousands. Fixed Variable Total $ Transactions (000) 1,066.5 283.5 Online $ Stores
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The following selected data pertain to the belt division of Allen Corp. for last year: Sales = $500,000 Average operating Assets = $200,000 Operating Income = $80,000 Turnover = 2.5 Min. Required Return = 20% What was the return on investment?
Back Mountain Industries (BMI) has two divisions: East and West. BMI has a cost of capital of 20 percent. Selected financial information (in thousands of dollars) for the first year of business follows East Mest Sales revenue Incone Investment (beginning of year) Current liabitities (beginning of year) RED expenditures $3,60e $7,600 655 1,650 330 780 2,600 330 1, 15e 1, esa PRED 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 BMI uses economic value added. (Enter answers in thousands of dollars. Round your answers to 1 decimal place.) Divisions EVA East 86.0 West 50.0
A-1. Evaluate the performance of the two divisions assuming BMI uses economic value added (EVA). A-2. Which division had the better performance?
PDT Co. has two divisions, East and West. Invested assets and condensed income statement data for each division for the past year ended December 31 are as follows: East Division West Division Revenues $1,200,000 $800,000 Operating expenses 950,000 640,000 Service department charges 145,000 72,000 Invested assets 800,000 500,000 (a) Prepare condensed income statements for the past year for each division. (b) Using the expanded expression, determine the profit margin, investment turnover, and rate of return on investment for each division. Round to one decimal place.
Subject: acc

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