Alpha Corporation recorded operating data for its Omega division for the year. Alpha requires its return to be 10%. Sales- P700,000; Controllable margin- P80,000; Total average assets- P2,000,000; Fixed costs- P50,000. What is the ROI for the year?
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Alpha Corporation recorded operating data for its Omega division for the year. Alpha requires its return to be 10%. Sales- P700,000; Controllable margin- P80,000; Total average assets- P2,000,000; Fixed costs- P50,000. What is the
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- The following selected data pertain to the Argent Division for last year: Required: 1. How much is the residual income? 2. How much is the return on investment? (Rounded to four significant digits.)Allana recorded operating data for its Xyza division for the year. The company requires its return to be 10%.Sales P500,000Controllable margin 90,000Total average assets 300,000Fixed costs 30,000Residual income 50,000What is the ROI for the yearOne segment of D's Company has the following data: Operating assets of ₱5,000,000; Operating income of ₱750,000. Moreover, the company has a required target ROI of 14% for the said segment Compute the segment's ROI for the year. Assuming that operating assets for the next year increase by 10%. How much would operating income have to increase to reach the target?
- The following information relates to Zinc Corporation for last year: Sales Revenue ($500,000), Net Operating Income ($25,000) and Degree of Operating Leverage (5). Sales at Zinc are expected to be $600,000 next year. Assuming no change in cost structure, this means that net operating income for next year should be: O a. $45,000 b. $125,000 O c. $30,000 O d. $50,000Alexander Inc. makes basketballs. The results for the year were as follows: Basketballs Sales $450,000 Income $72,000 Asset base $300,000 Weighted average cost of capital 15% Required:Compute the following amounts for the company:SHOW ALL CALCULATIONS. ROUND EACH NUMBER TO TWO (2) DECIMAL PLACES. A. Return on investment (ROI). B. Residual income if the desired rate of return is 20%. C. EVA. D. Turnover. E. Margin.The Thomas Company has established a target rate of return of 15% for all of its divisions. In 20x8, Division X generated sales of $500,000 and expenses of $380,000. Total assets at the beginning of the year were $500,000, and total assets at the end of the year were $620,000. For 20x8, what was Division X's residual income? A. B. C. D. $27,000 $120,000 $45,000 $36,000
- Myrtle Company has sales of $128,000, cost of goods sold of $58,000, operating expenses of $12,000, average invested assets of $400,000, and a hurdle rate of 7.75 percent. Calculate Myrtle's return on investment and its residual income. Note: Enter your ROI answer as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%). Round your Residual Income (Loss) answer to the nearest whole dollar. Return on Investment (ROI) Residual Income (Loss) %The New York division of Ram Co. had the following financial data for 2020: sales $600,000, average operating assets $200,000, margin (or profit margin) 5%, minimum required rate of return 12%. 1. What was the return on investment for the division? a)10% b)7% c)15% d)12% 2. What was the dollar amount of residual income for the division? a)$6,000 b)$8,000 c)$12,000 d)$16,000Solano Company has sales of $520,000, cost of goods sold of $380,000, other operating expenses of $51,000, average invested assets of $1,650,000, and a hurdle rate of 8 percent. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario’s impact on Solano’s ROI and residual income. (Note: Treat each scenario independently.)a. Company sales and cost of goods sold increase by 40 percent. What is the residual income? Thanks
- Bramble Corp.recorded operating data for its shoe division for the year. The company's desired return is 5%. Sales Contribution margin Total direct fixed costs Average total operating assets $12400000 O 77% O $90000 O 3% O $220000 400000 180000 520000 What is the controllable margin for the year?The Magazine Division of XYZ publication Company had the following financial data for the year: Assets available for use P 1,000,000 BV P1,500,000 MV Residual income P 100,000 Return on investment 15% A. What was the Magazine Division’s segment income? B. If the manager of the Magazine Division is evaluated based on return on investment, how much would she willing to pay for an investment that promise to increase net segment income by P50,000?Mitsu Division has the following results for the year: Revenues $1,080,000Variable expenses 440,000Fixed expenses 400,000Total divisional assets are $1,600,000. The company's minimum required rate of return is 14 percent. What is the residual income for Scottso?
