Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charge Sales $936,000 Cost of goods sold 421,200
Q: Sher Manufacturing Pty Ltd has two retail divisions., which have the following reported results for…
A:
Q: Pollux Company had the following income statement for last year: Sales $360,000 Less: Cost of…
A: A ratio that shows the relationship between investments and net income of company is known as return…
Q: Pollux Company had the following income statement for last year Sales-$360,000 Less: Cost of goods…
A: A. Average operating assets = (Beginning Assets + Ending assets) / 2 Average operating assets =…
Q: Hello, I have the following question. Shown here is an income statement in the traditional format…
A: Calculate total variable expense per unit, total fixed costs, and selling price per unit
Q: Summary operating data for Custom Wire & Tubing Company during the year ended April 30, 20Y6, are as…
A: Income statement: The financial statement which reports revenues and expenses from business…
Q: Shown here is an income statement in the traditional format for a firm with a sales volume of 7,500…
A: Operating income refers to the revenue that is earned by the company after deducting all the…
Q: Profit Margin, Investment Turnover, and ROI Briggs Company has an operating income of $36,000,…
A: Ratio analysis is a method of measuring the financial position of the organization with different…
Q: Bounty Brands has hired your firm to evaluate its ratios relating to productivity. The CFO, Tyrion…
A: Asset turnover ratio measures the efficiency of assets in generating revenue of the company.
Q: ollux Company had the following income statement for last year: Sales $360,000 Less: Cost of…
A: Gross profit margin is one of a profitability ratio which helps management to identify or analyze…
Q: The following data were adapted from a recent income statement of The Bluth Company: (in millions)…
A: Formula: Sales - variable cost = Contribution margin.
Q: Solano Company has sales of $520,000, cost of goods sold of $380,000, other operating expenses of…
A: The term "residual income" refers to money earned after the income-generating work has been…
Q: Profit Margin, Investment Turnover, and return on investment The condensed income statement for the…
A:
Q: Sales Net operating income Average operating assets $17,958,000 51,005,200 5 4,898,000 The…
A: Formula: Division return on investment = ( Net operating income / Average operating Assets ) x 100
Q: Profit Margin, Investment Turnover, and Return on Investment The condensed income statement for the…
A: According to Dupont formula, Return on Investment = Profit margin * Asset Turnover
Q: The sales, income from operations, and invested assets for each division of Grosbeak Company are as…
A: Profit Margin = Income from Operations / Sales Investment Turnover = Sales / Invested Assets Rate of…
Q: Profit Margin, Investment Turnover, and Return on Investment The condensed income statement for the…
A: Formulae used: Profit margin=Operating income Sales×100Investment turnover=SalesTotal…
Q: ROI, Margin, Turnover Jarriot, Inc., presented two years of data for its Furniture Division and its…
A:
Q: a. Using the DuPont formula for return on investment, determine the profit margin, investment…
A: The rate of return on investment is calculated as product of profit margin and investment turnover.…
Q: A company's shipping division (an investment center) has sales of $2,460,000, net income of…
A: Profit margin = Net income / Net sales Investment Turnover = Net sales / Average invested assets
Q: Dacker Products is a division of a major corporation. The following data are for the most recent…
A: Residual income is the income earned over and above income at minimum required rate of return level.…
Q: Provide the missing data in the following table for a distributor of martial arts products: (Enter…
A: Ratio analysis means where different ratio of various years of years companies has been compared and…
Q: Provide the missing data in the following table for a distributor of martial arts products: (Enter…
A: Alpha: Asset Turnover = Sales / Average Operating Assets Sales = Average Operating Assets * Turnover…
Q: Ratio Analysis The following information pertains to Cobb Corporation's financial results for the…
A: Given that , Net sales = $ 135000 Cost of goods sold = $ 48000 Net income = $ 47000
Q: Darby Company, operating at full capacity, sold 135,300 units at a price of $72 per unit during the…
A: Answer to the First part:- Total Variable Cost for the current year is as follows:- Particulars…
Q: Profit Margin, Investment Turnover, and ROI Briggs Company has operating income of $72,576, invested…
A: Du pont analysis is for calculating fundamental performance of the company. Profit Margin= Net…
Q: Profit margin, investment turnover, and return on investment The condensed income statement for the…
A: The total amount paid by your organization as a cost directly related to the sale of products is…
Q: ROI and Investment Decisions Jarriot, Inc., presented two years of data for its Furniture Division…
A:
Q: Bode Corporation has two divisions. East and West. Data from the most recent month appears below:…
A: Break-Even Point: The break-even point is the point at which total costs and total revenues are…
Q: Darby Company, operating at full capacity, sold 165,500 units at a price of $87 per unit during the…
A: Solution :- 1)Calculation of fixed and variable costs as follows under:- First we need to allocate…
Q: Provide the missing data in the following table for a distributor of martial arts products: (Round…
A: Formula of ROI and Net operating income is as follows: ROI=Margin×TurnoverNet Operating Income…
Q: Profit Margin, Investment Turnover, and Return on Investment The condensed income statement for the…
A: Profit margin is the ratio of profitability which shows ratio between operating income and sales…
Q: rane Company Division B recorded sales of $59,700, the variable cost of goods sold of $42,100,…
A: In this question, we have been asked to find the differential loss and income. The solution to this…
Q: Profit Margin, Investment Turnover, and Return on Investment The condensed income statement for the…
A:
Q: The Textile Division of Electrotech Corporation reported the following results for a recent year…
A: Formulas: Profit margin = Net income / Sales where, Net income = Sales - Expenses
Q: Profit Margin, Investment Turnover, and return on investment The condensed income statement for the…
A: a) Profit margin is calculated as below: Investment turnover ratio is calculated as below: Rate of…
Q: Profit Margin, Investment Turnover, and return on investment The condensed income statement for the…
A: Return on Investment is a ratio which is used by companies to measure financial performance. In…
Q: Profit Margin, Investment Turnover, and Return on Investment The condensed income statement for the…
A:
Q: Commercial Retail Division Division Sales 945,000 966,000 Cost of Goods Sold 504,000 559,300 Selling…
A: Formula: Gross profit = Sales - cost of goods sold
Q: rovide the missing data in the following table for a distributor of martial arts products:…
A: By applying this 3 formula Sales Formula = Turnover x Average operating asset Net operating…
Q: Forchen, Inc., provided the following information for two of its divisions for last year: Small…
A: Margin = Operating income/Sales = $2,000,000/$34,670,000 = 5.77%
Q: Gough Corporation has two divisions. Domestic and Foreign. Data from the most recent month appears…
A: 1. BREAK EVEN POINT IN SALES : = FIXED COST / CONTRIBUTION MARGIN RATIO 2. CONTRIBUTION MARGIN…
Q: A company's division has sales of $2,610,000, income of $991,800, and average assets of $1,800,000.…
A: Solution: Compute the Division's Profit Margin Numerator / Denominator = Profit Margin Income…
Q: rofit Margin, Investment Turnover, and Return on Investment The condensed income statement for the…
A: 1) Profit Margin = Operating Income *100 / Sales 2) Investment Turnover = Sales / Invested Assets 3)…
Q: OI and Investment Decisions Jarriot, Inc., presented two years of data for its Furniture Division…
A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: Profit Margin, Investment Turnover, and return on investment The condensed income statement for the…
A: Profit margin percentage is the profit as a percentage of sales or revenue. Investment turnover…
Q: A condensed income statement for the Electronics Division of Gihbli Industries Inc. for the year…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: Provide the missing data in the following table for a distributor of martial arts products: (Enter…
A: Ratio analysis is a method of measuring the financial position of the organization with different…
Q: The condensed income statement for the Consumer Products Division of Tri-State Industries Inc. is as…
A: Profit margin = Operating income / Sales Investment turnover = Sales / Operating assets Return on…
Step by step
Solved in 2 steps
- The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of $5,500,000 and average capital assets of $12,000,000. A. Based on this information, calculate asset turnover. B. Using the sales margin from the previous exercise, what is the total ROI for the company during the current year?The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales $540,000 Cost of goods sold 243,000 Gross profit $297,000 Administrative expenses 135,000 Income from operations $162,000 The manager of the Consumer Products Division is considering ways to increase the return on investment. a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that $1,350,000 of assets have been invested in the Consumer Products Division. Round the investment turnover to one decimal place. Profit margin % Investment turnover Rate of return on investment % b. If expenses could be reduced by $27,000 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on investment for the Consumer Products Division? Round the investment…
- Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales $960,000 Cost of goods sold 432,000 Gross profit $528,000 Administrative expenses 336,000 Income from operations $192,000 The manager of the Consumer Products Division is considering ways to increase the return on investment. a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that $2,400,000 of assets have been invested in the Consumer Products Division. Round the investment turnover to one decimal place. Profit margin fill in the blank 1 % Investment turnover fill in the blank 2 Rate of return on investment fill in the blank 3 % b. If expenses could be reduced by $48,000 without decreasing sales, what would be the impact on the…Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales $816,000 Cost of goods sold 367,200 Gross profit $448,800 Administrative expenses 285,600 Income from operations $163,200 The manager of the Consumer Products Division is considering ways to increase the return on investment. a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that $1,360,000 of assets have been invested in the Consumer Products Division. Round the investment turnover to one decimal place. Profit margin 2 x % Investment turnover Rate of return on investment % b. If expenses could be reduced by $40,800 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on investment for the Consumer…Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales $1,026,000 Cost of goods sold 461,700 Gross profit $564,300 Administrative expenses 205,200 Income from operations $359,100 The manager of the Consumer Products Division is considering ways to increase the return on investment. a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that $1,710,000 of assets have been invested in the Consumer Products Division. Round the investment turnover to one decimal place. Profit margin % Investment turnover Rate of return on investment % b. If expenses could be reduced by $51,300 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on…
- Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill's data are expressed in dollars. The electronics industry averages are expressed in percentages. TannenhillCompany ElectronicsIndustryAverage Sales $4,000,000 100.0 % Cost of goods sold (2,120,000) (60.0) Gross profit $1,880,000 40.0 % Selling expenses $(1,080,000) (24.0) % Administrative expenses (640,000) (14.0) Total operating expenses $(1,720,000) (38.0) % Operating income $160,000 2.0 % Other revenue and expense: Other revenue 120,000 3.0 Other expense (80,000) (2.0) Income before income tax expense $200,000 3.0 % Income tax expense (80,000) (2.0) Net income $120,000 1.0 % a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the…Shown here is an income statement in the traditional format for a firm with a sales volume of 17,500 units: Revenues $ 175,500 Cost of goods sold ($11,500 + $2.95/unit) 69,025 Gross profit $ 106,475 Operating expenses: Selling ($2,000 + $1.20/unit) 25,400 Administration ($5,250 + $0.45/unit) 14,025 Operating income $ 67,050 Required: a. Prepare an income statement in the contribution margin format. Contribution Margin Income Statement Variable expenses: Total variable expenses 0 0 Fixed expenses: Total fixed expenses 0 $0 b. Calculate the contribution margin per unit and the contribution margin ratio. (Do not round intermediate calculations. Round your answers to 2 decimal places.) c|. Calculate the firm's operating income (or loss) if the volume changed from 19,500 units to 1. 24,500 units. 2. 11,500 units. d. Refer to your answer to part a when total revenues were $175,500. Calculate the firm's operating income (or loss) if unit selling price and variable expense…The following data were adapted from a recent income statement of The Bluth Company: (in millions) Sales $294,260 Operating costs: Cost of products sold $(141,240) Marketing, administrative, and other expenses (94,160) Total operating costs $(235,400) Operating income $58,860 Assume that the variable amount of each category of operating costs is as follows: (in millions) Cost of products sold $79,450 Marketing, administrative, and other expenses 38,250
- Shown here is an income statement in the traditional format for a firm with a sales volume of 7,500 units. Cost formulas also are shown: Revenues $ 34,400 Cost of goods sold ($5,500 + $2.10/unit) 21,250 Gross profit $ 13,150 Operating expenses: Selling ($1,160 + $0.11/unit) 1,985 Administration ($3,900 + $0.20/unit) 5,400 Operating income $ 5,765 Required: Prepare an income statement in the contribution margin format. Calculate the contribution margin per unit and the contribution margin ratio. Calculate the firm's operating income (or loss) if the volume changed from 7,500 units to (a. 11,250 units and b. 3,750 units.) Refer to your answer to part a for total revenues of $34,400. Calculate the firm’s operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues (a. Increase by $14,000 and b. Decrease by $3,000.)Income statement information for Einsworth Corporation follows: Sales $442,000 Cost of goods sold 150,280 Gross profit 291,720 Prepare a vertical analysis of the income statement for Einsworth Corporation. If required, round percentage answers to the nearest whole number. Einsworth Corporation Vertical Analysis of the Income Statement Amount Percentage Sales $442,000 % Cost of goods sold 150,280 % Gross profit $291,720 %Pollux 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.(Carry computations out to three decimal places.) A. What are average operating assets? B. What is margin? C. What is turnover? D. What is ROI?