1) Sales: $36,480,000 Net Operating Income: $2,808,960 Average operating assets:
ID: 2573428 • Letter: 1
Question
1) Sales: $36,480,000
Net Operating Income: $2,808,960
Average operating assets: $8,000,000
The company's minimum required rate of return: 16%
The divisions margin used to compute ROI is cloest to: 29.6%, 35.1%, 21.9%, or 7.7%?
2) Last year the division had total sales of $19,560,000, net operating income of $1,877,760, and average operating assets of $6,000,000.
The divisions return on investment ROI is closest to: 7.3%, 23.8%, 31.3%, or 3.0%?
3) Sales: $15,200,0000
Variable Expenses: 9,470,000
Contribution Margin: 5,730,000
Fixed Expenses: 4,818,000
Net operating Income: $912,000
The company's minimum required rate of return is 12% and its average operating assets were $8,000,000. Last years residual income was closest to: 912,000, (48,000), 960,000, or (972,800)?
Explanation / Answer
1 Margin= Net Operating Income/Sales = 2808960/36480000= 7.7% 2 ROI = Net Operating Income/Average operating assets =1877760/6000000= 31.3% 3 Residual income = 912000-(8000000*12%)= -48000
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