Required: 1. Compute the Office Products Division's ROI for this year. 2. Compute the Office Products Division's ROI for the new product line by itself. 3. Compute the Office Products Division's ROI for next year assuming that it performs the same as this year and adds the new product line.
Q: Supplies 6,000 4.00 Miscellaneous administrative expense 8,700 1.00 Total $1,152,000 $96.00 It is…
A: Income statement is one of the financial statements of the company, which states the revenue and the…
Q: Provide answer for this question
A: Step 1:Minimum required return = Average operating assets * Required rate of return = $643,000 *…
Q: Compute the rate of return on investment for each division. b. Which division is the most…
A: Formula: Rate of return for Retail division = ( Income from operations / Invested Assets ) x 10
Q: Problem 4 (R ulati ying Knix Products is a division of Park Textiles, Inc. During the coming year,…
A: (4). Margin after the new investment = Net Income / Sales…
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: To answer these questions, we'll need to follow these steps:### Step 1: Compute the Company's Degree…
Q: "I know headquarters wants us to add that new product line," said Dell Havasi, manager of Billings…
A: Operating income is the difference between total revenue and total operating expenses of the…
Q: Assume that you are the president of your company and paid a year-end bonus according to the amount…
A: Given: The president of the company paid an year-end bonus as per the net income.
Q: ute ROI for Division B. b. Compute residual income for Division A. c. Division B could increase its…
A: Companies invest in the projects to get the sufficient return on investment and create value for…
Q: Current Attempt in Progress The South Division of Ayayai Company reported the following data for the…
A: Return on investment (ROI) is a metric used to measure the profitability on an investment.ROI is…
Q: 1. Compare the costs of Version 1 POS and Version 2 POS. Consider the cumulative results for the…
A: (1). Cost for 3 years Particulars Version 1 pos version 2 pos Purchase cost 170000 Sale…
Q: Required information [The following information applies to the questions displayed below.] A food…
A: Residual income is the excess of income over the minimum required rate of return.It indicates the…
Q: Assume that you are the president of your company and paid a year-end bonus according to the amount…
A: Inventory can be valued under any of three methods. They are 1.FIFO 2. LIFO 3.Weighted average…
Q: Hi please help with the screenshots and this follow up question 2) The Marketing Department has…
A: The Marketing Department has proposed increasing the West Division's monthly advertising by $21,000…
Q: Suresh Co. expects its five departments to yield the following income for next year.
A: The income statement which shows separate amount of incomes, revenues, expenses of each department…
Q: When using the moving-average cost formula with a perpetual system, Question 24 options: a new…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: Back Mountain Industries (BMI) has two divisions: East and West. BMI has a cost of capital of 10…
A: For the purpose of computing the profit or loss based on the capital invested, the business entities…
Q: Evaluate the performance of the two divisions assuming UEI uses return on investment (ROI).
A: Return on investment is one of the profitability measure under which net income is being analysed as…
Q: Writer One Inc. manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted…
A: Computation of Variable Operating Income for 2018 Amount Amount Sales 6,500 x 0.8 $5,200…
Q: Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama.…
A: Return on investment is a measure to find out profit or loss on the investment. It measure the…
Q: Please answer last 3 subparts labeled d, e, f. D. What would be the effect on the ROI of the Tufting…
A: Return on investment (ROI): This financial ratio evaluates how efficiently the assets are used in…
Q: Want Answer please provide Solutions
A:
Q: solve a and b based on data in the images provided. a.What are the minimum and maximum transfer…
A: AMP industries has two divisions. 1. Battery division 2. Auto division Battery division is in Canada…
Q: Lou Barlow, a divisional manager for Sage Company, has ar year period. His annual pay raises are…
A: It's important to note that the IRR should be interpreted in conjunction with other financial…
Q: Chick-Fil-A are the Lord’s Calories (CLC) has the following divisions within their company that…
A: Return on Investment (ROI) means the return given by each investment. which sis helpful to choose…
Q: The Willard Division's operating data for the past two years are provided below: Return on…
A: Here,ROI of Year 1 is 12%ROI of Year 2 is 36%NOI of Year 2 is $360,000Turnover of Year 2 is 3Sales…
Q: I want to answer this question
A: Detailed explanation:When determining the minimum necessary return for a division, it is critical to…
Q: Roy Toy, a division of Fun Corp. has a net operating income of $60000 and average operating assets…
A: Solution 1: Residual income = net operating income - Minimum required income = 60000 - (300000*15%)…
Q: Sales Mix Analysis Delving further into the operations, another branch which is in the…
A: Calculation of Sales Required to earn Target Income of $ 135,000 Desired Sales = (Fixed Costs +…
Q: 1. Compute ROI (use operating income before income tax) 2. In using EVA, what is the EVA of the…
A: Return on investment is the net income earned on the basis of investment earned by the company.
Q: 7.15 "Comparative analysis with other companies allows a company to identify the manufacturer at the…
A: Comparative analysis facilitates the comparison of multiple companies who are of the same metrics or…
Q: Gideon Corp. is a reinsurance and financial services company. Gideon strongly believes in evaluating…
A: Residual income refers to the income a company earns over its required rate of return. It is…
Q: M4 Inc. expects to maintain the same inventories at the end of 2020 as at the beginning of the year.…
A: The question is based on the concept of financial accounting. As per Bartleby guidelines we are…
Q: Please made correct answer
A: minimum required return is calculated by multiplying the average operating assets by the minimum…
Q: Assume two divisions of a manufacturing company had the following sales, income from operations, and…
A: (1) & (2) The ROI of Division A is 22.5%. The ROI of Division B is 24%.
Q: Do you think that the Balanced Scorecard approach can be employed to evaluate the performance of…
A: Yes, the Balanced Scorecard approach can be employed to evaluate the performance of Bell Division.…
Q: The Campus Division of All-States Bank has assets of $2,700 million. During the past year, the…
A: >Return On Income is the ratio that calculate the efficiency of asset to generate the profits.…
Q: ROI is effective because it takes into consideration the three factors under the control of an…
A: All questions are done based on formulas given in question
Q: Need help with this question
A: If you have any help please let me know in comment box and then I will help you.
Q: . Compute ROI for Division A. b. Compute residual income for Division B. c. Division A could…
A: Lets understand the basics. Return on investment shows how much profit is earned using the…
Q: See questions 1 - 3 in image Question 4: If you were in Dell Havasi's position, would you accept or…
A: The answer provided below has been developed in a clear step by step manner. Step: 1…
Q: #1 The company had an overall return on investment (ROI) of 15% last year (considering all…
A: Introduction Margin: It is the ratio of net operating income divided by sales. It gives information…
Q: The Best Medical Supply Company has two divisións that operate independently of one another. The…
A: Return on Investment = Operating IncomeInvestment x 100 North - ROI = Operating IncomeInvestmentx…
Q: [The following information applies to the questions displayed below.] Suresh Co. expects its five…
A: Budgeted income statement is prepared to estimate the amount of profit or loss in a future period.
Q: Kalu Company, a national manufacturer of lawn mowing and snow-blowing equipment, segments its…
A: Residual income, commonly referred to as economic profit or economic value-added (EVA), is a metric…
Q: Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of…
A: Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or…
Q: The following information is available about the status and operations of A-Klop Company, which has…
A: The infusion of funds into multiple investment avenues and projects available is regarded as an…
Q: 6. Compute the residual income of CBS. 7. Compute the EVA of CBS
A: Residual Income = Segment Margin - (Average Assets x Target Rate of Return) Economic Value Added =…
Q: Concord Corporation recorded operating data for its auto accessories division for the year. Sales…
A: The net income is calculated as difference between revenue and total expenses. The contribution…
Step by step
Solved in 4 steps
- "I know headquarters wants us to add that new product line," said Dell Havasi, manager of Billings Company's Office Products Division. "But I want to see the numbers before I make any move. Our division's return on investment (ROI) has led the company for three years, and I don't want any letdown." Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROI, with year-end bonuses given to the divisional managers who have the highest ROIS. Operating results for the company's Office Products Division for this year are given below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Divisional average operating assets The company had an overall return on investment (ROI) of 15% this year (considering all divisions). Next year the Office Products Division has an opportunity to add a new product line that would require an additional investment that would increase average operating assets by…Capital Investments has two divisions. Each division's required rate of return is 10%. Planned operating results for 2020 are as follows: (Click the icon to view the planned operating results.) Read the requirements. Requirement a. What is the current ROI for each division? Begin by selecting the formula to calculate ROI, then compute the ROI for each division. Division A Division B + + || = || ROI % %1. Compute the residual income of MCC. 2. Compute the EVA of MCC.
- I want the get the solution from requirement a to eplease answer 4a,b,c and 5 only. 4-a. What will be the new breakeven point if the additional $213,280 is spent on advertising? 4-b. Prepare a contribution income statement at the new breakeven point. 4-c. What is the percentage change in both fixed costs and in the breakeven point? 5. If the additional $213,280 is spent for advertising in the next year, what is the sales level (in units) needed to equal the current year’s operating profit at 60,000 unitsPlease Provide Answer with Full explanation and provide it Step by step
- The new chief executive officer (CEO) of Richard Manufacturing has asked for a variety of information about the operations of the firm from last year. The CEO is given the following information, but with some data missing: (Click the icon to view the variety of operations information.) Read the requirements, Requirement 1. Find (a) total sales revenue, (b) selling price, (c) rate of return on investment, and (d) markup percentage on full cost for this product. (a) The total sales revenue is (Round your answer to the nearest cent.) (b) The selling price per unit is (Round the retum on investment to the nearest whole percent, X%.) (c) The rate of return on investment is (d) Calculate the markup percentage on full cost for this product. (Round your intermediary calculations to the nearest cent and the markup to the nearest hundredth percent XXX%) The markup percentage on full cost for this product is Requirement 2. The new CEO has a plan to reduce fixed costs by $200,000 and variable…Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Required 1X Required 2 Sales Net operating income. Average operating assets Required: 1. For each division, compute the return on investment (ROI). 2. Compute the residual income for each division assuming the company's minimum required rate of return is 15%. Complete this question by entering your answers in the tabs below. ROI Osaka $ 10,500,000 $630,000 $ 3,500,000 Osaka Division For each division, compute the return on investment (ROI). % Yokohama $ 35,000,000 $ 2,800,000 $ 17,500,000 Yokohama %Provide correct solution for this question
- Capital Investments has two divisions. Each division's required rate of return is 10%. Planned operating results for 2020 are as follows: (Click the icon to view the planned operating results.) Read the requirements. Requirement a. What is the current ROI for each division? Begin by selecting the formula to calculate ROI, then compute the ROI for each division. Measure of income + Measure of investment 12,350,000 95,000,000 10,640,000 56,000,000 Division A Division B Division A Division B Measure of income 12,350,000 10,640,000 Division A Division B Requirement b. What is the current residual income for each division? Begin by selecting the formula to calculate the residual income (RI), then compute the RI for each division. X Required rate of return Measure of investment 95,000,000 56,000,000 10 % 10 % $ ROI ... % % -( -( $ -($ ROI X 13 % 19 % = ) = ) = Requirement c. Capital is planning an expansion that will require each division to increase its investments by $25,000,000 and its…Imagination Corporation uses residual income to evaluate the performance of its divisions. Imagination's minimum required rate of return is 10%. In April, the Commercial Products Division had average operating assets of $105,000 and net operating income of $9,700. What was the Commercial Products Division's residual income in April? Multiple Choice $970. $(970). $800. $(800).Required: Consider each part independently 1A. Determine the division’s expected ROI using Dupont formula. What is the division’s expected Residual Income? 1B. How many units must Smart sell to earn P100,000 Residual Income? 1C. The manager has the opportunity to sell additional 15,000 units at P29.50. Variable cost per unit would be the same but fixed cost would be increased by P50,000. An additional investment of P150,000 would be required. If the manager of Smart Division accepts the special order, by how much and in what direction will residual income change? increasing or decreasing direction? Answer 1a to 1c with solution pls