Business, 14.11.2019 23:31 sindy35111

Profit margin, investment turnover, and return on investment
the condensed income statement for the consumer products division of milner industries inc. is as follows (assuming no service department charges):
sales: $82,500,000
cost of goods sold: 53,625,000
gross profit: $28,875,000
administrative expenses: 15,675,000
income from operations: $13,200,000
the manager of the consumer products division is considering ways to increase the rate of return on investment.
a. using the dupont formula for rate of return on investment, determine the profit margin, investment turnover, and rate of return on investment of the consumer products division, assuming that $5,000,000 of assets have been invested in the consumer products division. if required, round the investment turnover to one decimal place.
b. if expenses could be reduced by $350,000 without decreasing sales, what would be the impact on the profit margin, investment turnover, and rate of return on investment for the consumer products division? if required, round the investment turnover to one decimal places.

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 14:30

crow design, inc. is a web site design and consulting firm. the firm uses a job order costing system in which each client is a different job. crow design assigns direct labor, licensing costs, and travel costs directly to each job. it allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs. direct labor hours (professional) 6,250 hours direct labor costs ($1,800,000 support staff salaries ,000 computer ,000 office ,000 office ,000 in november 2012, crow design served several clients. records for two clients appear here: delicious treats mesilla chocolates direct labor 700 hours 100 hours software licensing $ 4,000 $400 travel costs 8,000 1. compute crow design’s direct labor rate and its predetermined indirect cost allocation rate for 2012. 2. compute the total cost of each job. 3. if simone wants to earn profits equal to 50% of service revenue, how much (what fee) should she charge each of these two clients? 4. why does crow design assign costs to jobs?

Answers: 2

Answer

Business, 22.06.2019 21:00

On july 2, year 4, wynn, inc., purchased as a short-term investment a $1 million face-value kean co. 8% bond for $910,000 plus accrued interest to yield 10%. the bonds mature on january 1, year 11, and pay interest annually on january 1. on december 31, year 4, the bonds had a fair value of $945,000. on february 13, year 5, wynn sold the bonds for $920,000. in its december 31, year 4, balance sheet, what amount should wynn report for the bond if it is classified as an available-for-sale security?

Answers: 3

Answer

Business, 22.06.2019 21:50

Assume that (i) setups need to be completed first; (ii) a setup can only start once the batch has arrived at the resource, and (iii) all flow units of a batch need to be processed at a resource before any of the units of the batch can be moved to the next resource. process step 1 molding 2 painting 3 dressing setup time 15 min. 30 min. no setup processing time 0.25 min./unit 0.15 min./unit 0.30 min./unit which batch size would minimize inventory without decreasing the process capacity?

Answers: 1

Answer

Business, 22.06.2019 21:50

Which three of the following expenses can student aid recover? -tuition -television -school supplies -parties and socializing -boarding/housing

Answers: 2

Answer

You know the right answer?

Profit margin, investment turnover, and return on investment
the condensed income statement fo...

Questions