Schulz GmbH, a German company, has set a target rate of return for this year of 18
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Question:
Schulz GmbH, a German company, has set a target rate of return for this year of 18 percent for its US division . The US division generated annual revenue of $35,100,000 on average assets of $22,5 million. The division's variable costs accounted for 45 percent of sales, and fixed costs were $6,750,000.
Calculate the following items for the US portion:
A. ROI
Note: Round the percentage to one decimal place (ie from 4.555% to 4.6%).
Reply
%
B. Residual income: $Answer
C. Profit margin
Note: Round the percentage to one decimal place (ie from 4.555% to 4.6%).
Reply
%
D. asset turnover
Note: Round the amount to one decimal place (ie from 4.555 to 4.6).
Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
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