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58. Aguilera Industries is a division of a major corporation. Data concerning the most recent
year appears below:
Sales $24,000,000
Net operating income $1,752,000
Average operating assets $6,000,000
The division's return on investment (ROI) is closest to:
59. The Portland Division's operating data for the past two years is as follows:
Year 1 Year 2
Return on investment 12% 24%
Net operating income ? $288,000
Turnover ? 2
Margin ? ?
Sales $1,600,000 ?
The Portland Division's margin in Year 2 was 150% of the margin for Year 1.
The net operating income for Year 1 was:
60. The Portland Division's operating data for the past two years is as follows:
Year 1 Year 2
Return on investment 12% 24%
Net operating income ? $288,000
Turnover ? 2
Margin ? ?
Sales $1,600,000 ?
The Portland Division's margin in Year 2 was 150% of the margin for Year 1.
The turnover for Year 1 was:
61. The Portland Division's operating data for the past two years is as follows:
Year 1 Year 2
Return on investment 12% 24%
Net operating income ? $288,000
Turnover ? 2
Margin ? ?
Sales $1,600,000 ?
The Portland Division's margin in Year 2 was 150% of the margin for Year 1.
The sales for Year 2 were:
62. The Portland Division's operating data for the past two years is as follows:
Year 1 Year 2
Return on investment 12% 24%
Net operating income ? $288,000
Turnover ? 2
Margin ? ?
Sales $1,600,000 ?
The Portland Division's margin in Year 2 was 150% of the margin for Year 1.
The average operating assets for Year 2 were:
63. Last year the Uptown Division of Gorcen Enterprises had sales of $300,000 and a net
operating income of $24,000. The average operating assets at Uptown last year amounted to
$120,000.
Last year at Uptown the margin used to calculate ROI amounted to:
64. Last year the Uptown Division of Gorcen Enterprises had sales of $300,000 and a net
operating income of $24,000. The average operating assets at Uptown last year amounted to
$120,000.
At Uptown the turnover used to calculate ROI last year was:
65. Last year the Uptown Division of Gorcen Enterprises had sales of $300,000 and a net
operating income of $24,000. The average operating assets at Uptown last year amounted to
$120,000.
Last year at Uptown the return on investment was:
66. Baad Industries is a division of a major corporation. Last year the division had total sales
of $20,440,000, net operating income of $1,860,040, and average operating assets of $7,000,000.
The division's margin is closest to:
67. Baad Industries is a division of a major corporation. Last year the division had total sales
of $20,440,000, net operating income of $1,860,040, and average operating assets of $7,000,000.
The division's turnover is closest to:
68. Baad Industries is a division of a major corporation. Last year the division had total sales
of $20,440,000, net operating income of $1,860,040, and average operating assets of $7,000,000.
The division's return on investment (ROI) is closest to:
69. Daab Products is a division of a major corporation. The following data are for the most
recent year of operations:
Sales $11,520,000
Net operating income $322,560
Average operating assets $3,000,000
The company's minimum required rate of return 10%
The division's margin used to compute ROI is closest to:
70. Daab Products is a division of a major corporation. The following data are for the most
recent year of operations:
Sales $11,520,000
Net operating income $322,560
Average operating assets $3,000,000
The company's minimum required rate of return 10%
The division's turnover used to compute ROI is closest to:
71. Daab Products is a division of a major corporation. The following data are for the most
recent year of operations:
Sales $11,520,000
Net operating income $322,560
Average operating assets $3,000,000
The company's minimum required rate of return 10%
The division's return on investment (ROI) is closest to:
72. Daab Products is a division of a major corporation. The following data are for the most
recent year of operations:
Sales $11,520,000
Net operating income $322,560
Average operating assets $3,000,000
The company's minimum required rate of return 10%
The division's residual income is closest to:
73. The following information relates to the Quilt Division of TDS Corporation for last year:
Sales $200,000
Contribution margin $90,000
Net operating income $65,000
Average operating assets $500,000
Minimum required rate of return 10%
What was the Quilt Division's return on investment (ROI) for last year?
9-60
74. The following information relates to the Quilt Division of TDS Corporation for last year:
Sales $200,000
Contribution margin $90,000
Net operating income $65,000
Average operating assets $500,000
Minimum required rate of return 10%
Assume that Quilt was being evaluated solely on the basis of residual income. Which of the
following investment opportunities would Quilt want to invest in?
An investment that generates a return of 12% An investment that generates a return of 16%
A) Yes Yes
B) No Yes
C) Yes No
D) No No
