The Dry Wall Division reports the following operating data for the past two years:       Year 1       Year 2   Margin   12 %     ?   Asset Turnover   3.0       2.0   Average operating assets   ?     $ 152,500   Net operating income $ 41,900       ?   Stockholders’ equity $ 82,500     $ 122,500   Sales   ?       ?     The return on investment at the Dry Wall Division was exactly the same in Year 1 and Year 2.Net operating income in Year 2 amounted to:     Multiple Choice   $41,900.   $30,000.   $36,600.   $54,900.

Dengar

The Electronics Division of Anton Company reports the following results for the current year:          Revenues $ 553,000   Operating expenses $ 496,000   Operating income $ 57,000   Operating assets $ 670,000      Anton Company has set a target return on investment (ROI) of 14% for the Electronics Division.The Electronic Division's margin is:   Multiple Choice   11.49%.   15.80%.   10.31%.   8.51%.

A-1. Evaluate the performance of the two divisions assuming BMI users return on investment (ROI). A-2. Which division had the better performance?

Assume the Hiking Shoes division of the Simply Shoes Company had the following results last year (in thousands). Management's target rate of return is 10% and the weighted average cost of capital is 30%. Its effective tax rate is 40%. Sales Operating income Total assets Current liabilities What is the division's Residual Income (RI)? OA. $100,000 O B. $4,400,000 Ⓒ C. $700,000 O D. $280,000 $11,000,000 1,100,000 4,000,000 780,000

The Millard Division's operating data for the past two years are provided below: Year 1 Return on investment Net operating income Turnover Margin Sales 10% ? ? ? Year 2 24% $ 380,000 4 ? $ 3,210,000 Millard Division's margin in Year 2 was 120% of the margin in Year 1. The net operating income for Year 1 was: Note: Round your intermediate percentage calculations to the nearest whole percent. ?

Assume division 1 of the XYZ Company had the following results last year (in thousands) Management's required rate of return is 81% and the weighted average cost of capital is 6% Its effective tax rate is 30% Sales$ 9,000,000 Operating expenses $ 1,200,000 Operating income $1,500,000 Total revenue$ 2,000,000 Total assets $ 12,000,000 Current liabilities$ 5,000,000 What is the division's residual income? $100,000 $200,000 $500, 000 $ 540,000 Assume division 1 of the XYZ Company had the following results last year (in thousands). Management's required rate of return is 8% and the weighted average cost of capital is 6% effective tax rate is 30% . \table [[Sales, $9, 000, 000

For its three investment centers, Gerrard Company accumulates the following data: II III Sales $1,900,000 $4,075,000 $4,069,000 Controllable margin Average operating assets 912,240 1,838,390 4,209,800 5,068,000 7,993,000 12,028,000 The centers expect the following changes in the next year: (I) increase sales 14%; (II) decrease controllable fixed costs $376,000; (III) decrease average operating assets $491,000. Compute the expected return on investment (ROI) for each center. Assume center I has a contribution margin percentage of 70%. (Round ROI to 1 decimal place, e.g. 1.5.) I II III The expected return on investment % %

For its three investment centres, Stahl Company accumulates the following data:      Centre I   Centre II   Centre III Sales   $1,971,600   $4,003,000   $3,944,000 Controllable margin   788,640   2,346,970   3,643,800 Average operating assets   4,929,000   8,093,000   12,146,000 The centres expect the following changes in the next year: Centre I a 20% increase in sales; Centre II a $323,720 decrease in costs; and Centre III a $485,840 decrease in average operating assets.Calculate the expected return on investment for each centre. Assume Centre I has a contribution margin percentage of 80%. (Round ROI to 2 decimal places, e.g. 1.57%.)     Centre I   Centre II   Centre III The expected return on investment     %     %     %

Assume the Hiking Shoes division of the Simply Shoes Company had the following results last year (in thousands). Management's target rate of return is 30% and the weighted average cost of capital is 5%, its effective tax rate is 35%. Sales Operating income Total assets Current liabilities What is the division's Residual Income (RI)? ⒸA. $280,000 OB. $1,750,000 OC. $800,000 OD. $1,800,000 $5,000,000 2,000,000 4,000,000 840,000