Chapter 11 Performance Measurement in Decentralized Organizations
39. The margin in Year 2 was:
40. Sales in Year 2 amounted to:
Chapter 11 Performance Measurement in Decentralized Organizations
41. Average operating assets in Year 1 were:
42. Net operating income in Year 2 amounted to:
Chapter 11 Performance Measurement in Decentralized Organizations
43. The division’s margin is closest to:
44. The division’s turnover is closest to:
Chapter 11 Performance Measurement in Decentralized Organizations
45. The division’s return on investment (ROI) is closest to:
The West Division of Shekarchi Corporation had average operating assets of $620,000 and
net operating income of $80,100 in March. The minimum required rate of return for
performance evaluation purposes is 14%.
46. What was the West Division’s minimum required return in March?
Chapter 11 Performance Measurement in Decentralized Organizations
47. What was the West Division’s residual income in March?
The Consumer Products Division of Weiter Corporation had average operating assets of
$570,000 and net operating income of $65,100 in March. The minimum required rate of
return for performance evaluation purposes is 12%.
48. What was the Consumer Products Division’s minimum required return in March?
Chapter 11 Performance Measurement in Decentralized Organizations
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49. What was the Consumer Products Division’s residual income in March?
Estes Company has assembled the following data for its divisions for the past year:
Chapter 11 Performance Measurement in Decentralized Organizations
50. Division A’s sales are:
51. Division A’s residual income is:
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52. Division B’s average operating assets is:
Operating data from Tindall Company for last year follows:
Chapter 11 Performance Measurement in Decentralized Organizations
53. The average operating assets amounted to:
54. The residual income was:
Chapter 11 Performance Measurement in Decentralized Organizations
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55. The margin used in ROI calculations was closest to:
The Baily Division recorded operating data as follows for the past two years:
Baily Division’s turnover was exactly the same in both Year 1 and Year 2.
Chapter 11 Performance Measurement in Decentralized Organizations
56. Sales in Year 1 amounted to:
57. The net operating income in Year 1 was:
Chapter 11 Performance Measurement in Decentralized Organizations
58. The margin in Year 2 was:
59. The average operating assets in Year 2 were:
Chapter 11 Performance Measurement in Decentralized Organizations
The following data are available for the South Division of Redride Products, Inc. and the
single product it makes:
60. How many units must South sell each year to have an ROI of 16%?
Chapter 11 Performance Measurement in Decentralized Organizations
61. If South wants a residual income of $50,000 and the minimum required rate of return is
10%, the annual turnover will have to be:
Chapter 11 Performance Measurement in Decentralized Organizations
The following data pertain to the Whalen Division of Northern Industries.
The margin at Whalen was exactly the same in Year 2 as it was in Year 1.
62. The average operating assets for Year 2 amounted to:
Chapter 11 Performance Measurement in Decentralized Organizations
63. The return on investment in Year 1 was:
Chapter 11 Performance Measurement in Decentralized Organizations
64. The minimum required rate of return in Year 1 was:
Chapter 11 Performance Measurement in Decentralized Organizations
Dickonson Products is a division of a major corporation. The following data are for the last
year of operations:
65. The division’s margin is closest to:
66. The division’s turnover is closest to:
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67. The division’s return on investment (ROI) is closest to:
68. The division’s residual income is closest to:
Chace Products is a division of a major corporation. Last year the division had total sales of
$21,300,000, net operating income of $575,100, and average operating assets of $5,000,000.
The company’s minimum required rate of return is 12%.