Given the following data: 1. Return on investment ROI).. 2. Sales............. 3. Average operating assets............ 4. Minimum required rate of return...... 5. Margin...... "' D Re .15% P240,000 .P120,000 12% .7.50%
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- Sales Margin = choose your answer... choose your answer... choose your answer... Operating Income 4 Total Assets Sales Revenue choose your answer... choose your answer... レ Return on Investment (ROI) = choose your answer...Assume that the following are the data acquired: Consumption ……………… 200M Imports …………………50M Investment ………………. 55M Deflator ………………..1.20 Government Spending....…..120M Population …………….100M Exports ………………………. 80M Compute for the Nominal GDP.The Marine Division of Pacific Corp. has average invested assets of $120,000,000. Sales revenue of $50,210,000 results in an operating income of $9,964,000. The hurdle rate is 8%. a. Calculate the return on investment. (Round your answer to 2 decimal places.) Raun mant b. Calculate the profit margin. (Round your answer to 2 decimal places.) c. Calculate the investment turnover. (Round your answer to 4 decimal places.) Next >
- The South Division of Wiig Company reported the following data for the current year. Sales Variable costs Controllable fixed costs Average operating assets 1. 2. 3. $3,000,000 Top management is unhappy with the investment center's return on investment (ROI). It asks the manager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action. 1,950,000 600,000 Return on Investment 5,000,000 Increase sales by $300,000 with no change in the contribution margin percentage. Reduce variable costs by $150,000. Reduce average operating assets by 4%. (a) Compute the return on investment (ROI) for the current year. (Round ROI to 2 decimal places, e.g. 1.57%) %Required information Problem 24-2A (Algo) Payback period, accounting rate of return, net present value, and net cash flow calculation LO P1, P2, P3 [The following information applies to the questions displayed below.] Project Y requires a $306,000 investment for new machinery with a six-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Project Y $ 370,000 165,760 51,000 26,000 $ 127,240Return on investment (ROI) could be calculated using which of the following formulas? W Multiple Choice O O X Margin * (Net operating income + Sales) O X O Margin x (Average operating assets + Sales) X Margin * (Sales - Net operating income) Type here to search X Margin × (Sales - Average operating assets) < Prev 2 of 10
- 3. Compute Project Y’s accounting rate of return. The numerator drop down options are: accounts receivable, annual income, average investment, average total assets, cost of goods sold, current assets, current liabilities, net sales, total assets The denominator dropdown options are: accounts receivable, annual income, average investment, average total assets,Data for Hermann Corporation are shown below:Per Unit Percent of SalesSelling price ................................. $90 100%Variable expenses ....................... 63 70Contribution margin ..................... $27 30%Fixed expenses are $30,000 per month and the company is selling 2,000 units per month.Required:1. The marketing manager argues that a $5,000 increase in the monthly advertising budget wouldincrease monthly sales by $9,000. Should the advertising budget be increased?2. Refer to the original data. Management is considering using higher-quality components that would increasethe variable cost by $2 per unit. The marketing manager believes the higher-quality product would increasesales by 10% per month. Should the higher-quality components be used?Management has at its disposal the following information: Revenue function: R =890Q ‒5.5Q2 The profit-maximizing price: P=494 OMR. Then the Profit-maximizing quantity is (............) Units. (write only the number) Answer:
- Determining Missing Items in Return Computation One item is omitted from each of the following computations of the return on investment: Rate of Returnon Investment = Profit Margin x InvestmentTurnover 13.2% = 6% x (a) (b) = 10% x 1.80 10.5% = (c) x 1.50 15% = 5% x (d) (e) = 12% x 1.10 Determine the missing items identified by the letters as shown above. If required, round your answers to two decimal places. (a) fill in the blank 1 (b) fill in the blank 2% (c) fill in the blank 3% (d) fill in the blank 4 (e) fill in the blank 5%3. Based on segment margin and average assets, compute the profit margin4. Based on segment margin and average assets, compute the asset turnover5. Based on segment margin and average assets, compute the ROI.Which of the following correctly orders the investment rules of average accounting return (AR), internal rate of return (IRR), and net present value (NPV) from the most desirable to the least desirable? a. IRR, AR, NPV. b. AR, IRR, NPV. c. NPV, AR, IRR. d. AR, NPV, IRR. e. NPV, IRR, AR.