need proper solution step by step 11P11.49A (LO 4. 5) Return on investment is often expressed as follows:ROI=Controllable marginAverage operating assetsInstructionsa. Explain the advantages of breaking down the ROI calculation into two separate components.a. $20,000,000h. 24%b.Controllable marginSalesSalesNet operating incomeAverage operating assetsProfit marginAsset turnoverReturn on investmentResidual income1. Comparative data on three companies operating in the same industry follow. The minimum required ROI is 10% for all three companies. Determine the missing amants.Company CCompany A$1,500,000Company B$750,000(a)(b)$180,000$5.000.0000.5%SalesAverage operating assets$750,000(d)(1)(h)$150,000(c)(e)(2)2%4(0)(b)D(0)2. Compare and contrast the performance of the three companies, with reference to their relative performance as measured by ROI and residual income.

ROI :— Profit Margin * Assets Turnover Return on investment or return on costs is a ratio between…

P11.49A (LO 4. 5) Return on investment is often expressed as follows: ROI Controllable margin Average operating assets Instructions a. Explain the advantages of breaking down the ROI calculation into two separate components. a. $20,000,000 h. 24% b. Controllable margin Sales Sales Net operating income Average operating assets. Profit margin Asset turnover Return on investment. Residual income Sales Average operating assets 1. Comparative data on three companies operating in the same industry follow. The minimum required ROI is 10% for all three companies. Determine the missing amounts. Company A Company B Company C (a) (b) $5,000,000 0.5% $1,500,000 $180,000 $750,000 $150,000 (c) (e) (2) 2% (k) $750,000 (d) (0) (h) (0) 2. Compare and contrast the performance of the three companies, with reference to their relative performance as measured by ROI and residual income. D 4 (0) (b)

P11.49A (LO 4. 5) Return on investment is often expressed as follows: ROI Controllable margin Average operating assets Instructions a. Explain the advantages of breaking down the ROI calculation into two separate components. a. $20,000,000 h. 24% b. Controllable margin Sales Sales Net operating income Average operating assets. Profit margin Asset turnover Return on investment. Residual income Sales Average operating assets 1. Comparative data on three companies operating in the same industry follow. The minimum required ROI is 10% for all three companies. Determine the missing amounts. Company A Company B Company C (a) (b) $5,000,000 0.5% $1,500,000 $180,000 $750,000 $150,000 (c) (e) (2) 2% (k) $750,000 (d) (0) (h) (0) 2. Compare and contrast the performance of the three companies, with reference to their relative performance as measured by ROI and residual income. D 4 (0) (b)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 13MC: A responsibility center structure that considers investments made by the operating segments by using...

See similar textbooks

Similar questions

Sales Margin = choose your answer... choose your answer... choose your answer... Operating Income 4 Total Assets Sales Revenue choose your answer... choose your answer... レ Return on Investment (ROI) = choose your answer...
3. Based on segment margin and average assets, compute the profit margin4. Based on segment margin and average assets, compute the asset turnover5. Based on segment margin and average assets, compute the ROI.
Which of the following is not a measure used by the financial perspective lens of the balanced scorecard? 9. Multiple Cholce Ask ROI Net operating Income EVA Residual Income
The South Division of Wiig Company reported the following data for the current year. Sales Variable costs Controllable fixed costs Average operating assets 1. 2. 3. $3,000,000 Top management is unhappy with the investment center's return on investment (ROI). It asks the manager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action. 1,950,000 600,000 Return on Investment 5,000,000 Increase sales by $300,000 with no change in the contribution margin percentage. Reduce variable costs by $150,000. Reduce average operating assets by 4%. (a) Compute the return on investment (ROI) for the current year. (Round ROI to 2 decimal places, e.g. 1.57%) %
Return on investment is often expressed as follows: d. Requirements 1. What are the advantages of breaking down the computation into two separate components? 2. Fill in the blanks for the following table: Revenues Income Investment Income as a percentage of revenues Investment turnover ROI Requirement 2. Fill in the blanks for the following table: (Enter investment turnover to the nearest tenth, X.X.) Companies in Same Industry B Income and investment alone shed investment or to its A 1,400,000 $ 210,000 $ 700,000 % Company B does % income. 1,100,000 165,000 % Income Income Revenues Investment Revenues Investment 3% C Now comment on the relative performance of these companies as thoroughly as the data permit. light on comparative performances. Thus, we Company B should emphasize increasing investment turnover by reducing percentage of revenues by increasing only its 5,500,000 1.5% 2.0 = % Company A in terms of income margin. Company B has a Company A's. Company C's income as a…
Management has at its disposal the following information: Revenue function: R =890Q ‒5.5Q2 The profit-maximizing price: P=494 OMR. Then the Profit-maximizing quantity is (............) Units. (write only the number) Answer:
Please draw a diagram on Paper to identify all elements of Return on Investment and to show the deduction of the ROI formula - Margin * Turnover.
Please answer the blank areas including total expenses, income from operations, what is the expected margin of safety in dollars and as a percentage of sales (if required , round the percent to one decimal place) and determine the operating leverage . Thx ( please provide explanations).
Return on investment (ROI) is computed in the following manner: ROI is equal to turnover multiplied by earnings as a percent of sales. Turnover is sales divided by total investment. Total investment is current assets (inventories, accounts receivable, and cash) plus fixed assets. Earnings equal sales minus the cost of sales. The cost of sales consists of variable production costs, selling expenses, freight and delivery, and administrative costs. Complete parts a and b. a. Construct an influence diagram that relates these variables. Choose the correct diagram below. Click here to view influence diagram D. Click here to view influence diagram C. Click here to view influence diagram A. Click here to view influence diagram B. b. Develop a mathematical model using the symbols defined on the left. E: Earnings T: Turnover ROI = T = E = S: Sales TI = C = C: Cost of Sales TI: Total Investment CA: Current Assets FA: Fixed Assets PC: Prod Costs SC: Sales Expense FC: Freight and Delivery AC: Admin…
Which are formulas for ROI? (check all that apply) Sales-Profit Margin Net Operating Income / Average Operating Assets Profit Margin x Inventory Turnover Profit Margin x Asset Turnover Net Operating Income - Average Operating Assets
Determining Missing Items in Return Computation One item is omitted from each of the following computations of the return on investment: Rate of Returnon Investment = Profit Margin x InvestmentTurnover 13.2% = 6% x (a) (b) = 10% x 1.80 10.5% = (c) x 1.50 15% = 5% x (d) (e) = 12% x 1.10 Determine the missing items identified by the letters as shown above. If required, round your answers to two decimal places. (a) fill in the blank 1 (b) fill in the blank 2% (c) fill in the blank 3% (d) fill in the blank 4 (e) fill in the blank 5%
Please see picture for the full problem and table. a-1. Evaluate the performance of the two divisions assuming BMI uses return on investment (ROI). (Round your final answers to nearest whole percentage value.)