Cornwall company has two divisions, a and b. information for each division is as follows:

  • XYZ Company has two divisions, A and B. Information for each division is as follows:                                                                             A                                B Net earnings for division                           P 40,000                P 260,000 Asset base for division                               P100,000              P1,200,000 Target rate of return                                       15%                         18% Margin                                                               10%                         20% Weighted average cost of capital                 12%                         12% What is the total sales amount for B? P666,667 P800,000 P1,300,000 P1,200,000 Group of answer choices 1 2 3 4

    XYZ Company has two divisions, A and B. Information for each division is as follows:                                                                             A                                B Net earnings for division                           P 40,000                P 260,000 Asset base for division                               P100,000              P1,200,000 Target rate of return                                       15%                         18% Margin                                                               10%                         20% Weighted average cost of capital                 12%                         12% What is the operating asset turnover for A? 0.15 0.10 4.00 2.50 Group of answer choices 1 2 3 4

    Jordan Company has two divisions, which reported the following results for the most recent year.   Division I Division II Income ₱ 02,700,000 ₱ 00,600,000 Average invested capital ₱ 18,000,000 ₱ 03,000,000 ROI 15% 20% Imputed interest rate = 10% What is the residual income of Division II? Group of answer choices ₱ 0 ₱ 300,000 ₱ 900,000 ₱ 294,000

  • Selected financial data for the Photocopies Division of Elizabeth's Business Machines is as follows: Sales $8,200,000 Operating income $2,788,000 Total assets $3,280,000 Current liabilities $400,000 Required rate of return 14% Weighted average cost of capital 3% What is the Photocopier Division's residual income?   Question 16 options:   $459,200   $2,328,800   $3,247,200   $2,689,600

    The following are selected data for the division for the consumer products of ABC Corp for 2020:       Sales                                            P 10,000,000       Average invested capital                4,000,000       Net Income                                       400,000       Cost of Capital                                        8% What is the return on investment for the division? 2% 4% 8% 10% Group of answer choices 1 2 3 4

    The following information is available about the status and operations of Big Shot Corp., which has a required ROI of 15% and discount rate of 12%:               Division A Division B Divisional Investment P 500,000 P 1,250,000 Divisional Profit P 350,000 P 625,000 Variable Cost P 500,000 P 3,500,000 Divisional Sales P1, 500,000 P 5,500,000   Division A could increase its sales by P 300,000 by increasing its investment by P300,000. Compute its ROI. Division A could increase its sales by P150,000 by increasing its investment by P400,000. Compute its total residual income. Division B could reduce its investment so that its asset turnover increased by 2, while holding total sales constant. Compute its residual income.

  • The following selected data pertain to the belt division of Allen Corp. for last year:   * Sales $2,000,000   * Average operating assets $500,000   * Net operating income $300,000   * Turnover 4.0   * Minimum required return 18%     How much is the return on investment? 1) 60% 2) 33% 3) 18% 4) 15%

    The following are selected data for the division for the consumer products of ABC Corp for 2020:             Sales                                          P 10,000,000             Average invested capital                4,000,000             Net Income                                       400,000             Cost of Capital                                        8% What is the return on sales for the division? 4% 8% 10% 20% Group of answer choices 1 2 3 4

    Consider the following data from two divisions of a company, P and Q:   Divisional P Q Sales $ 2,000,000   $ 1,100,000   Operating Income $ 800,000   $ 660,000   Investment $ 3,200,000   $ 1,760,000       If the minimum rate of return is 9%, what is Division P's residual income (RI)?

  • Verbo Company earned controllable margin of P125,000 on sales of P1,600,000. The division had average operating assets of P1,300,000. The company requires a return on investment of at least 8%. How much is residual income?   P21,000 P104,000 P126,000 P121,000

    The following information is available about the status and operations of Jay Arr Company, which has a required ROI of 15% and discount rate of 12%:               Division A Division B Divisional Investment P 500,000 P 1,250,000 Divisional Profit P 350,000 P 625,000 Variable Cost P 500,000 P 3,500,000 Divisional Sales P1, 500,000 P 5,500,000   Division A could increase its sales by P 300,000 by increasing its investment by P300,000. Compute its ROI. Division A could increase its sales by P150,000 by increasing its investment by P400,000. Compute its total residual income. Division B could reduce its investment so that its asset turnover increased by 2, while holding total sales constant. Compute its residual income.

    Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6.51 percent. Selected operating data for the three divisions follow:      Peak   View   Grand Sales revenue $ 342,000 $ 230,000 $ 312,000 Cost of goods sold   202,000   108,000   199,000 Miscellaneous operating expenses   43,000   37,000   37,000 Average invested assets   1,350,000   930,000   1,095,000   Required:1. Compute the return on investment for each division. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.))2. Compute the residual income for each division.  (Loss amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to nearest whole dollar.)

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