Warren Company has a hurdle rate of 11.2%. a. Calculate the return on investment for each division. (Round your answers to 2 decimal places.) Return on investment Ashland % % Erie b. Break each division's return on investment down into its component parts using the DuPont method. (Round your profit margin to 2 decimal places and investment turnover to 3 decimal places.) Profit margin Investment Turnover % Ashland Erie c. Calculate the residual income for each division. (Negative amounts should be indicated by a minus sign.) Residual Income Ashland Erie

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 %

Concord Company earned a controllable margin of $125000 on sales of $1607000. The division had average operating assets of $1293000. The company requires a return on investment of at least 7%. How much is residual income? O $34490 O $159490 O $90510 O $112490

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).

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Knowledge Check East Division of Blue Spruce Anchors provided the following information: Contribution margin Controllable margin Average operating assets Minimum rate of return Return on investment $890,000 $395,900 $2,140,000 Compute the return on investment and the residual income. (Round return on investment answer to two decimal places (e.g., 15.25%).) Residual income 9 % %

Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last year's results:   Adams Division Jefferson Division Net (after-tax) income $653,400   $330,750   Total capital employed 4,560,000   3,705,000   In addition, Washington Company's top management has set a minimum acceptable rate of return equal to 7%. Required: Enter negative values as negative numbers. 1.  Calculate the residual income for the Adams Division. 2.  Calculate the residual income for the Jefferson Division.

What is the investment turnover?