9-106
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:
9-112
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:
9-115
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:
9-117
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:
9-119
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%
Net operating income
$322,560
300,000
Residual income
$22,560
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?
9-121
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
75.
Cabal Products is a division of a major corporation. Last year the division had total sales
of $10,040,000, net operating income of $582,320, and average operating assets of
$4,000,000. The company’s minimum required rate of return is 14%.
The division’s margin is closest to:
76.
Cabal Products is a division of a major corporation. Last year the division had total sales
of $10,040,000, net operating income of $582,320, and average operating assets of
$4,000,000. The company’s minimum required rate of return is 14%.
The division’s turnover is closest to:
77.
Cabal Products is a division of a major corporation. Last year the division had total sales
of $10,040,000, net operating income of $582,320, and average operating assets of
$4,000,000. The company’s minimum required rate of return is 14%.
The division’s return on investment (ROI) is closest to:
78.
Cabal Products is a division of a major corporation. Last year the division had total sales
of $10,040,000, net operating income of $582,320, and average operating assets of
$4,000,000. The company’s minimum required rate of return is 14%.
The division’s residual income is closest to: