Question

The following data are for the Akron Division of Consolidated Rubber, Inc.: Sales $ 770,000 Net...

The following data are for the Akron Division of Consolidated Rubber, Inc.:

Sales $ 770,000
Net operating income $ 47,000
Average operating assets $ 270,000
Stockholders' equity $ 77,000
Residual income $ 17,000

For the past year, the margin used in ROI calculations was:

0 1
Add a comment Improve this question Transcribed image text
✔ Recommended Answer
Answer #1

For the past year, the margin used in ROI was :

Margin = Net Operating income /Sales

= $47,000/$770,000

= 6.10%

Add a comment
Know the answer?
Add Answer to:
The following data are for the Akron Division of Consolidated Rubber, Inc.: Sales $ 770,000 Net...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • The following data are for the Akron Division of Consolidated Rubber, Inc.: Sales Net operating income...

    The following data are for the Akron Division of Consolidated Rubber, Inc.: Sales Net operating income Average operating assets Stockholders' equity Residual income $940,000 $ 83,000 $ 440,000 $ 94,000 $ 34,000 For the past year, the minimum required rate of return was: Multiple Choice o 68.00% o 11.14% C ... ... ... ... ..... . For the past year, the minimum required rate of return was: Ο Ο 68.00% Ο 11.14% Ο 8.83% Ο 33.41%

  • TB MC Qu. 11-140 The following data are for the Akron... The following data are for the Akron Division of Consolid...

    TB MC Qu. 11-140 The following data are for the Akron... The following data are for the Akron Division of Consolidated Rubber, Inc. Sales Net operating income Average operating assets Stockholders' equity Residual income $850,000 $ 55,000 $ 350,000 $ 85,000 $ 25,000 For the past year, the margin used in ROI calculations was: For the past year, the margin used in ROI calculations was: ook Ο Ο Ο Ο < Prev 17 of 20 :: Next >

  • Agustin Industries is a division of a major corporation. Data concerning the most recent year appears...

    Agustin Industries is a division of a major corporation. Data concerning the most recent year appears below. Sales Net operating income Average operating assets $17,000,000 $ 1,581,000 $5,000,000 The division's return on investment (ROI) is closest to: Multiple Choice O 31.62% O 72% C The following data are for the Akron Division of Consolidated Rubber, Inc.: Sales Net operating income Average operating assets Stockholders' equity Residual income $750,000 $ 45,000 $ 250,000 $ 75,000 $ 15,000 For the past year,...

  • Beta Inc has the following data for last years operations: Sales................................ $100,000 Net Operating Income........ $6,000...

    Beta Inc has the following data for last years operations: Sales................................ $100,000 Net Operating Income........ $6,000 Average Operating Assets... $40,000 Stockholders Equity............... $25,000 Minimum Required rate of return. 10% a) Compute Residual Income b) Compute return of investment Alpha Corp reported operating data as follows for the past year: Sales..................$600,000 Net Operating Income....$30,000 Average Operating Assets....$200,000 Stakeholders Equity.................. $50,000 Residual Income........................ $14,000 a) Calculate Alpha's Minimum Rate of Return b)Alpha's Margin c) Alpha's turnover

  • 2. Schlarbaum Corporation's management keeps track of the time it takes to process orders. During the...

    2. Schlarbaum Corporation's management keeps track of the time it takes to process orders. During the most recent month, the following average times were recorded per order: Wait time Inspection time Process time Move time Queue time Days 11.7 0.5 1.2 0.2 2.4 Required: a. Compute the throughput time. (Round your answer to 1 decimal places.) b. Compute the manufacturing cycle efficiency (MCE). (Do not round intermediate calculations. Round your answer to nearest whole percentage.) c. What percentage of the...

  • Provide the missing data in the following table for a distributor of martial arts products: (Enter...

    Provide the missing data in the following table for a distributor of martial arts products: (Enter "Turnover" and "ROI" answers to 1 decimal place.) Alpha Charlie Division Bravo $ 270,000 $ 43,200 $ 47,475 $ 416,000 Sales Net operating income Average operating assets Margin Turnover Return on investment (ROI) % 320 % Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Inventory Plant and...

  • Check my work 1 Provide the missing data in the following table for a distributor of...

    Check my work 1 Provide the missing data in the following table for a distributor of martial arts products: (Round "Turnover" and "ROI" answers to 1 decimal place.) Division points Alpha Bravo Charlie $ 302,500 Sales еВook $ 42, $ Net operating income 68,640 Hint 425,000 Average operating assets 13 % Margin Print 5.0 Turnover References Return on investment 35.0% 26.0 % |(ROI) 10 Check my work 2 Required information [The following information applies to the questions displayed below.] Part...

  • Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C $6,100,000 $10,100,000 $9,200,000 $1,525,000 $ 5...

    Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C $6,100,000 $10,100,000 $9,200,000 $1,525,000 $ 5,050,000 $2,300,000 Sales Average operating assetS Net operating income $ 317,200 $ 929,200 $ 225,400 Minimum required ratee of return 15.00% 18.40% 12.00% Required 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover 2. Compute the residual income (loss) for each...

  • 1. The following data are available for the Northern Division of Comet Products and the single...

    1. The following data are available for the Northern Division of Comet Products and the single product it makes: Unit selling price $60 Variable cost per unit $36 Annual fixed costs $840,000 Average operating assets $4,500,000 How many units must the Northern Division sell each year to have an ROI of 16%? 2. The Southern Division of Schuler Enterprises recorded operating data as follows for the past year: Sales $600,000 Net operating income 75,000 Average operating assets 300,000 Stockholders’ equity...

  • The Central Division of National, Inc., has operating income of $16,600 on sales revenue of $179,000....

    The Central Division of National, Inc., has operating income of $16,600 on sales revenue of $179,000. Divisional operating assets are $84,600, and management of National has determined that a minimum return of 13% should be expected from all investments. Required: a. Using the DuPont model, calculate The Central Division’s margin, turnover, and ROI. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Central Division Margin    % Turnover turns ROI % b. Calculate The Central Division’s residual...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT