Schulz GmbH, a German company, set an 18 percent target rate of return for its U.S. division for the year. The U.S. division generated $85,800,000 of annual revenue on average assets of $55,000,000. The division’s variable costs were 45 percent of sales, and fixed costs were $6,750,000. Compute the following items for the U.S. division:
Schulz GmbH, a German company, set an 18 percent target rate of return for its U.S. division for the year. The U.S. division generated $85,800,000 of annual revenue on average assets of $55,000,000. The division’s variable costs were 45 percent of sales, and fixed costs were $6,750,000. Compute the following items for the U.S. division:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Schulz GmbH, a German company, set an 18 percent target
a.
b. Residual income: $______
c. Profit margin ______%
d. Asset turnover ______
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