Return on Investment The operating income and the amount of invested assets in each division of Otte Industries are as follows:   Operating Income   Invested Assets Retail Division $176,400                 $840,000            Commercial Division 134,400                 560,000            Internet Division 167,500                 670,000            a.  Compute the return on investment for each division. Division Percent   Retail Division:   % Commercial Division:   % Internet Division:   % b.  Which division is the most profitable per dollar invested?

Consider the following data for three divisions of a company, X, Y, and Z:   Divisional: X Y Z Sales $ 1,470,000   $ 974,000   $ 4,861,000   Operating Income   173,200     172,300     180,500   Investment in assets   428,200     567,500     2,553,200       The return on sales (ROS) for Division Y is:   Multiple Choice   3.7%.   30.4%.   17.7%.   11.8%.

Profit Margin, Investment Turnover, and Return on Investment The condensed income statement for the Consumer Products Division of Tri-State Industries Inc. is as follows (assuming no support department allocations): Sales $1,980,000  Cost of goods sold (891,000) Gross profit $1,089,000  Administrative expenses (594,000) Operating income $495,000  The manager of the Consumer Products Division is considering ways to increase the return on investment. a.  Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that $3,300,000 of assets have been invested in the Consumer Products Division. Round the investment turnover to one decimal place. Profit margin fill in the blank 1 % Investment turnover fill in the blank 2 Return on investment fill in the blank 3 % b.  If expenses could be reduced by $99,000 without decreasing sales, what would be the impact on…

Vishnu

Meiji Isetan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow:     Division Osaka Yokohama Sales $ 9,600,000 $ 26,000,000 Net operating income $ 672,000 $ 2,340,000 Average operating assets $ 3,200,000 $ 13,000,000   Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 16%. Compute the residual income for each division. 3. Is Yokohama’s greater amount of residual income an indication that it is better managed?

Return on investment The operating income and the amount of invested assets in each division of Conley Industries are as follows: Operating Income Invested Assets Retail Division $72,600 $330,000 Commercial Division 117,600 490,000 Internet Division 224,100 830,000 a. Compute the return on investment for each division. (Round to the nearest whole percentage.) Division Percent Retail Division % Commercial Division % Internet Division b. Which division is the most profitable per dollar invested?

Meiji Isetan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow:     Division Osaka Yokohama Sales $ 9,800,000 $ 28,000,000 Net operating income $ 588,000 $ 2,240,000 Average operating assets $ 2,450,000 $ 14,000,000   Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 14%. Compute the residual income for each division. 3. Is Yokohama’s greater amount of residual income an indication that it is better managed?         Osaka Yokohama ROI   %   %         Osaka Yokohama Residual income

Return on investment The income from operations and the amount of invested assets in each division of Beck Industries are as follows:   Income from Operations Invested Assets Retail Division $156,200   $710,000   Commercial Division 56,000   280,000   Internet Division 194,400   720,000     a.  Compute the return on investment for each division. (Round to the nearest whole number.) Division Percent Retail Division fill in the blank 1 % Commercial Division fill in the blank 2 % Internet Division fill in the blank 3 % b.  Which division is the most profitable per dollar invested?

Meiji Isetan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Sales Net operating income Average operating assets Required 1 Required 2 Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 16%. Compute the residual income for each division. 3. Is Yokohama's greater amount of residual income an indication that it is better managed? Osaka $ 10,600,000 $ 742,000 $ 2,650,000 Complete this question by entering your answers in the tabs below. ROI % Division Required 3 For each division, compute the return on investment (ROI) in terms of margin and turnover. Osaka Yokohama Yokohama $ 36,000,000 $ 3,240,000 $ 18,000,000 %