Question

Question 9 A division has profit of $10 250, sales of $207 500 and an investment...

Question 9 A division has profit of $10 250, sales of $207 500 and an investment base of $112 500. If the required charge for capital is 14 per cent, determine the:

a. profit margin

b. asset turnover

c. return on investment

d. residual income.                                                                                                   

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Question 9 A division has profit of $10 250, sales of $207 500 and an investment...
Question 9 A division has profit of $10 250, sales of $207 500 and an investment base of $112 500. If the required charge for capital is 14 per cent, determine the: a. profit margin b. asset turnover c. return on investment d. residual income.       
A division has profit of $10 250, sales of $207 500 and an investment base of...
A division has profit of $10 250, sales of $207 500 and an investment base of $112 500. If the required charge for capital is 14 per cent, determine the: a. profit margin b. asset turnover c. return on investment d. residual income.   
Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products...
Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales $1,144,000 Cost of goods sold 514,800 Gross profit $629,200 Administrative expenses 400,400 Income from operations $228,800 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...
Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products...
Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales $1,848,000 Cost of goods sold 831,600 Gross profit $1,016,400 Administrative expenses 646,800 Income from operations $369,600 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...
Profit Margin, Investment Turnover, and Return on Investment The condensed income statement for the Consumer Products...
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 $798,000 Cost of goods sold (359,100) Gross profit $438,900 Administrative expenses (239,400) Operating income $199,500 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...
Profit Margin, Investment Turnover, and Rate of Return on Investment The condensed income statement for the...
Profit Margin, Investment Turnover, and Rate of Return on Investment The condensed income statement for the International Division of King Industries Inc. is as follows (assuming no service department charges): Sales $884,000 Cost of goods sold 397,800 Gross profit $486,200 Administrative expenses 176,800 Income from operations $309,400 The manager of the International Division is considering ways to increase the rate of return on investment. a. Using the DuPont formula for rate of return on investment, determine the profit margin, investment...
Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products...
Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales $1,020,000 Cost of goods sold 459,000 Gross profit $561,000 Administrative expenses 204,000 Income from operations $357,000 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...
Chapter 10 Question 2: Selected sales and operating data for three divisions of different structural engineering...
Chapter 10 Question 2: Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C Sales $ 6,800,000 $ 10,800,000 $ 9,900,000 Average operating assets $ 1,360,000 $ 2,700,000 $ 1,980,000 Net operating income $ 401,200 $ 1,069,200 $ 311,850 Minimum required rate of return 23.00 % 39.60 % 20.00 % Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms...
The Asphalt Division of Sierra Industries is operated as a profit center. Sales for the division...
The Asphalt Division of Sierra Industries is operated as a profit center. Sales for the division were budgeted for 2014 at $1,200,000. The only variable costs budgeted for the division were cost of goods sold ($590,000) and selling and administrative ($80,000). Fixed costs were budgeted at $130,000 for cost of goods sold, $120,000 for selling and administrative. Actual results for these items were:                                             Net Sales                                $1,185,000                                             Cost of goods sold                                                 Variable                                    545,000                                                 Fixed                                        140,000                                            ...
The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows...
The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales $942,000 Cost of goods sold 423,900 Gross profit $518,100 Administrative expenses 188,400 Income from operations $329,700 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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT