ROI RI $ EVA $ East 0.0450 (44,000) (66,600) West Fourth quarter operating income needed 0.0720 East (14,000) (46,980) How much would each division need to generate in new operating income in the fourth quarter to reach the company's desired ROI of 13% at year-end, assuming each division uses its available $54,000 to purchase a new investment? Assume it is a $54,000 nondepreciable asset but still included in operating assets. C 75020 West

42. The manager of Stock Division projects the following for next year: Sales $185,000 Operating income Operating assets The manager can invest in an additional project that would require $40,000 investment in additional assets and would generate $6,000 of additional income. The company's minimum rate $60,000 $375,000 of return is 14%. What is the residual income for Stock Division without the additional investment? * $6,000 $7,500 $40,000 $6,200 $6,600

:04 Variable expenses for Alpha Corporation are 40% of sales. What are sales at the break-even point, assuming that fixed expenses total $150,000 per year: Multiple Choice O $250,000 $600,000 $375,000 $150,000

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#1 The company had an overall return on investment (ROI) of 15% last year (considering all divisions). The Office Products Division has an opportunity to add a new product line that would require an additional investment in operating assets of $1,000,000. The cost and revenue characteristics of the new product line per year would be:   This Year New Line Next Year     New product line Info     Company Oveall Info:       Sales $10,000,000.00 $ 2,000,000.00 $12,000,000.00     Sales $2,000,000.00   ROI 15%     Variable expenses $6,000,000.00   $7,200,000.00     Variable expenses 60% of sales Invest in operating $1,000,000.00     Contribution margin $4,000,000.00   $4,800,000.00     Fixed expenses $640,000.00           Fixed expenses $3,200,000.00 $ 640,000.00 $3,840,000.00     Net Operating Income             Net operating income $800,000.00   $960,000.00                   Divisional operating assets $4,000,000.00 $ 1,000,000.00 $5,000,000.00                   Margin…

Accounting - ROI

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1. If Department B is able to reduce its operating assets by $100,000, Department B's new ROI would be 2. If Department A is able to increase its controllable margin by $60,000 as a result of reducing variable costs, Department A's new ROI would be

Assume that a company plans to introduce a new product to the market at a target selling price of $20 per unit. It is investing $4,000,000 to purchase the equipment needed to produce and sell 250,000 units per year. Assuming the company’s required rate of return on all investments is 16.50%, what is the new product’s target cost per unit? Multiple Choice   $21.84   $22.84   $18.36   $17.36

Only do 5 and 6