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
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- XY Company provided you the following data: Average operating assets 120,000 Margin on sales 15% Minimum required rate of return 20% Return on investment 25% Sales 300,000 Turnover 2.50 What is the residual income? (Correct ans: 21,000) need solutionDivision Y has generated sales revenue of $260,000 and achieved operating income of $18,500 using $20,000 of invested assets. If management desires a minimum rate of return of 10%, the profit margin would be _____. a.14.4% b.19.5% c.7.1% d.10.2%Verbo Company earned controllable margin of P125,000 on sales of P1,600,000. The division had average operating assets of P1,300,000. The company requires a return on investment of at least 8%. How much is residual income? P21,000 P104,000 P126,000 P121,000
- Shalom Company provided you the following data: Average operating assets 120,000 Margin on sales Minimum required rate of return Return on investment Sales Turnover What is the residual income? 15% 20% 25% 300,000 2.50Selected data from Division A of Green Company are as follows: Sales $ 630,000 Average investment $ 491,400 Operating income $ 81,900 Minimum rate of return 15% If the minimum rate of return was 11% (instead of the percentage shown above), Division A's residual income (RI) would be:1. Roy Toy, a division of Fun Corp. has a net operating income of $60000 and average operating assets of $300000. The required rate of return for the company is 15%. What is the division's residual income? a. $240000 b. $45000 c. $15000 d. $51000 2. If the manager of Roy To division is evaluated based on residual income, will she want to make an investment of $100000 that would generate an additional net operating income of $18000 per year?a. Yesb. No
- The following selected data pertain to Badang Company's Jaja Division for 2021: Sales Variable costs Traceable fixed costs Average invested capital Imputed interest rate P1,000,000 600,000 100,000 200,000 15% How much is the return on investment? 200% 75% 135% 150%U.S. Steal has the following income statement data: Total Operating Units Sold 80,000 Variable Fixed Total Total Income (Loss) $ 170,000 230,000 Costs Costs Costs Revenue $ 160,000 $ 70,000 $ 230,000 $ 400, 000 500,000 100,000 200,000 70,000 270,000 The top row of the table has the beginning values and the bottom row of the table has the ending values. a. Compute the degree of operating leverage (DOL) based on the formula below. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Percent change in operating income DOL Percent change in units sold Degree of operating leverage 1.41 b. Recompute DOL using the formula given below. There may be a slight difference due to rounding. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) O(P - vc) Q(P - VC) - FC DOL Q represents beginning units sold (all calculations should be done at this level). P can be found by dividing total revenue by units sold. VC can be found by…Pharoah Corporation's Cajun Spice division has a segment margin is $434200 for the current reporting period. The division has an asset turnover of 3.1. Segment margin as a percentage of sales is 10%. What is the division's ROI? O 31% O 10% O 21% O The answer cannot be determined from the information given.
- Assume a company reported the following results: Sales Variable expenses Contribution margin Fixed expenses $ 400,000 268,000 140,000 40,000 $ 100,000 $ 425,000 Net operating income Average operating assets If the company's minimum required rate of return on average operating assets is 16%, its residual income would be: Multiple Choice $33.000. $35.000. $32.000. $34,000if requires a minimum return on its investments of 15%, what is their residual income? NUBD Co has the following information available for one of its divisions: Average operating assets P5,000,000 Return on investment Sales 40% P8,000,000Shalom Company provided you the following data: Net operating income Total liabilities Contribution margin Average operating assets Sales 150,000 350,000 400,000 750,000 800,000 What is the return on investment?