Question: Consider the following data: 1. Prepare a similar tabular presentation, filling in all blanks. 2. Suppose each division is assessed a capital charge based on

Consider the following data:

1. Prepare a similar tabular presentation, filling in all blanks.
2. Suppose each division is assessed a capital charge based on a cost of capital of 10% of invested capital. Compute the economic profit for each division.
3. Which division is the best performer? Explain.

Division Invested capital Income Revenue Return on sales Capital turnover Rate of return on invested capital $1,050,000 $ 142,800 S 210,000 $2,310,000 S2.86,000 3% 3.5 10.5%

Step by Step Solution

★★★★★

3.31 Rating (172 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 The filledin blanks are underscored 2 3 If the criterion for judging ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

345-B-M-A-B-P-C (1570).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Consider the following data (in millions) from Midwest Financial, Inc., which has two main divisions: mortgage loans, and consumer loans: Required 1. Based on ROI, which division is more successful?...

Based on the cost of sampling and the presumed accuracy required, would sampling or 100 percent inspection be used to collect data on (a) The horsepower of each engine being in- stalled in new cars;...

Consider the following data on full-service restaurant sales. Calculate both the three-month and five-month moving averages for these data, and compare the forecasts by calculating the...

ROI and Economic Profit Calculations X Y Z invested capital $1,050,000 $_______ $1,200,000 income $________ $142,800 $210,000 revenue $2,310,000 $2,856,000 $_______ return on sales 3.00% ________%...

Division X Y Z Invested capital $1,080,000 $ $1,220,000 Income $ $142,800 $139,080 Revenue $2,268,000 $2,856,000 $ Income percentage of revenue 3 % % % Capital turnover 3.8 Rate of return on invested...

Consider the following data: (Click the icon to view the data.) Requirements 1. Prepare a similar tabular presentation, filling in all blanks. 2. Suppose each division is assessed a capital charge...

Consider the following data: Requirements 1. Prepare a similar tabular presentation, filling in all blanks. 2. Suppose each division is assessed a capital charge based on a cost of capital of 10% of...

Simple ROI and Economic Profit Calculations Consider the following data: X Y Z Invested Capital $1,020,000 ____ $1,200,000 Income _____ $187,650 $210,000 Revenue $2,550,000 $3,753,000 _______ Return...

Zero Corporation contributes inventory (computers) to State University for use in its mathematics program. The computers have a $1,225 cost basis and an $2,800 FMV. How much is Zeros charitable...

The current price of Apple stock is 450 dollars per share. The continuously compounded LIBOR is 0.7% per year. The at-the-money European call option on Apple with one-year to maturity is traded at...

Find the volume of a solid obtained by rotating the region enclosed by the graphs of y = e - x , y = 1 - e - x , and x = 0 about y = 3 . 5 . ( Use symbolic notation and fractions where needed. )

Verify that (5.28) is an unbiased estimator of risk. (Hint: Follow the hint in Exercise 53, but replace the integration by parts with an appropriate summationby parts.)

In Moore Companys flexible budget graph, the fixed cost line and the total budgeted cost line intersect the vertical axis at $90,000. The total budgeted cost line is $330,000 at an activity level of...

Chickasaw Company expects to produce 50,000 units of product IOA during the current year. Budgeted variable manufacturing costs per unit are direct materials $7, direct labor $12, and overhead $18....

Last year Molex's net cash provided by operating activities was $14.1 million and its net cash used by A-resting activities was $20.7 million. If net cash provided by financing activities was $9.8...

Alpine Stables, Incorporated, is established in Denver, Colorado, on April 1, 2023, to provide stables, animal care, and grounds for riding and showing horses. You have been hired as the new...

Current estimations place a regional firm as having a value of $750,000 in a boom and $300,000 otherwise. The probability of a boom is 45 percent. The firm owes $350,000 to its debtholders, so what...