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) R&D expenditures a Carolinas $ 1,500 190 1,000 230 750 Northeast $ 5,400 372 1,500 230 670 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 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 A1 Req A2 Evaluate 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). Divisions Carolinas Northeast ROI % %

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

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…

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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?

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.

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?

Far Sight is a division of a major corporation. The following data are for the latest year of operations: Required: a. What is the division's return on investment (ROI)?b. What is the division's residual income?  Sales 24,480,000 Net operating income 1.738.000 average operating assets 6,000 rate of return 16%

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