Question

Presented below is information related to the Southern Division of Riverbed, Inc. Contribution margin $1,212,400 Controllable...

Presented below is information related to the Southern Division of Riverbed, Inc. Contribution margin $1,212,400 Controllable margin $1,020,000 Average operating assets $4,080,000 Minimum rate of return 17 % Compute the Southern Division’s return on investment and residual income.

Return on investment enter the return on investment in percentages

Residual income $enter the residual income in dollars

show how you got it please!

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Residual income is defined as A. variable contribution margin less the minimum rate of return on...
Residual income is defined as A. variable contribution margin less the minimum rate of return on average operating assets. B. controllable income less the minimum rate of return on average operating assets. C. contribution margin less controllable fixed costs. D. controllable margin divided by average operating assets.
Presented below is selected financial information for two divisions of Samberg Brewing. Supply the missing information...
Presented below is selected financial information for two divisions of Samberg Brewing. Supply the missing information for the lettered items. Lager Lite Lager Contribution margin $500,000 $300,000 Controllable margin 200,000 (c) Average operating assets $ (a) $1,200,000 Minimum rate of return % (b) 11 % Return on investment 16 % % (d) Residual income $100,000 $204,000
Presented below is selected financial information for two divisions of Samberg Brewing. Supply the missing information...
Presented below is selected financial information for two divisions of Samberg Brewing. Supply the missing information for the lettered items. (Round minimum rate of return and ROI to 1 decimal place, e.g. 10.5%.) Lager Lite Lager Contribution margin $500,000 $300,000 Controllable margin 200,000 (c) Average operating assets $ (a) $1,200,000 Minimum rate of return % (b) 11 % Return on investment 16 % % (d) Residual income $100,000 $204,000
Presented below is selected information for two divisions of Juliana Company: Eastern Western Sales $600,000 $750,000...
Presented below is selected information for two divisions of Juliana Company: Eastern Western Sales $600,000 $750,000 Controllable margin 50,000 70,000 Average operating assets 100,000 200,000 Calculate the return on investment for each division. (Round answers to 2 decimal places, e.g. 15.25%.) Return on investment Eastern division % Western division % What is the residual income for each division if the required rate of return is 12%? Residual Income Eastern division $ Western division $
Jarriot, Inc., presented two years of data for its Furniture Division and its Houseware Division. Furniture...
Jarriot, Inc., presented two years of data for its Furniture Division and its Houseware Division. Furniture Division: Year 1 Year 2 Sales $32,670,000 $35,000,000 Operating income 1,339,470 1,435,000 Average operating assets 10,000,000 10,000,000 Houseware Division: Year 1 Year 2 Sales $12,260,000 $12,691,000 Operating income 576,220 469,567 Average operating assets 5,000,000 5,000,000 Required: Round the ROI and margin percentages to two decimal places (for example, enter the decimal .10555 as "10.56" percent). Round the turnover ratio to two decimal places. 1....
The manager of the snack division of Fairfax Industries is evaluated on her division’s return on...
The manager of the snack division of Fairfax Industries is evaluated on her division’s return on investment and residual income. The company requires that all divisions generate a minimum return on invested assets of 8 percent. Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. The annual cash bonus paid to division managers is 1 percent of residual income in excess of $100,000. The snack division’s operating margin for the year was $8.337...
The manager of the snack division of Fairfax Industries is evaluated on her division’s return on...
The manager of the snack division of Fairfax Industries is evaluated on her division’s return on investment and residual income. The company requires that all divisions generate a minimum return on invested assets of 8 percent. Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. The annual cash bonus paid to division managers is 1 percent of residual income in excess of $100,000. The snack division’s operating margin for the year was $9.737...
The manager of the snack division of Fairfax Industries is evaluated on her division’s return on...
The manager of the snack division of Fairfax Industries is evaluated on her division’s return on investment and residual income. The company requires that all divisions generate a minimum return on invested assets of 8 percent. Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. The annual cash bonus paid to division managers is 1 percent of residual income in excess of $100,000. The snack division’s operating margin for the year was $9.56...
Residual Income and Investment Decisions. Jarriot, Inc., presented two years of data for its Furniture Division...
Residual Income and Investment Decisions. Jarriot, Inc., presented two years of data for its Furniture Division and its Houseware Division. Furniture Division:         Year 1 Year 2 Sales $35,700,000 $37,700,000 Operating income 1,420,000 1,520,000 Average operating assets 2,750,000 2,750,000 Houseware Division:         Year 1 Year 2 Sales $11,500,000 $12,600,000 Operating income 660,000 540,000 Average operating assets 5,500,000 5,500,000 At the end of Year 2, the manager of the Houseware Division is concerned about the division’s performance. As a result, he...
Residual Income and Investment Decisions Jarriot, Inc., presented two years of data for its Furniture Division...
Residual Income and Investment Decisions Jarriot, Inc., presented two years of data for its Furniture Division and its Houseware Division. Furniture Division:         Year 1 Year 2 Sales $35,100,000 $37,800,000 Operating income 1,430,000 1,550,000 Average operating assets 4,560,000 4,560,000 Houseware Division:         Year 1 Year 2 Sales $11,900,000 $12,600,000 Operating income 630,000 570,000 Average operating assets 5,900,000 5,900,000 At the end of Year 2, the manager of the Houseware Division is concerned about the division’s performance. As a result, he...