Question: 2 Question 3-Performance Evaluation - Version A (10 marks) 3 4 Dingo Division's operating results include: controllable margin of $150,000, sales totaling $1,200,000, and

Division's operating results include: controllable margin of $150,000, sales totaling $1,200,000, and

2 Question 3-Performance Evaluation - Version A (10 marks) 3 4 Dingo Division's operating results include: controllable margin of $150,000, sales totaling $1,200,000, and investment of average operating assets of $500,000. Dingo is considering a project with sales of $122,000, controllable margin of $36,000, and an investment of average operating assets of $200,000. Dingo's minimum required rate of return is 12%. Required: 1. If Dingo Division is evaluated based on ROI, would the division accept this project? Calculate the current ROI and the ROI with the new project and comment. (5 marks)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Dingo Division's operating results include: controllable margin of $100,000, sales totaling $1,200,000, and investment of average operating assets of $500,000. Dingo is considering a project with...

A manager determined that certain costs were not responsive to changes in activity level. What are these costs? a. Mixed b. Flexible c. Variable d. Fixed Halpern Division's operating results include:...

Strategic cost management 1. FAITH BIRD CORP. has some material that originally cost P74,600. The material has a scrap value of P57,400 as is, but if reworked at a cost of P1,500, it could be sold...

QUESTION 1 Carr Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project Soup Project Nuts Initial investment $400,000 $600,000 Annual net...

NEED HELP ASAP PLS. THANKS HERE IT IS. help asap sorry about that. here is thr full details. pls help asap! thank u 4 B D Dingo Division's operating results include: operating income of $100,000,...

dingo divisions operating results include operating income $100,000 sales totaling$1,200,000 investment of average operating assets $500,000 A C D E G H 2. Question 3 - Performance Evaluation -...

Hello please refer to part 4 from the question paper I have attached the past student work for your reference just have to follow the format if you feel comfortable with I have attached the necessary...

1. From the scenario, cite your forecasting conclusions that support TFC?s decision to expand to the West Coast market. Speculate as to whether or not the agency conflict discussed in the scenario...

A new machine costs $200,000 and is expected to reduce net annual operating costs by $40,000 per year for 10 years. It will have an MV of $40,000 at the end of the tenth year. a. Find ATCFs and BTCFs...

Distinguish between how economic decisions are made in a command economy and how they are made in a market directed economy.

QUESTION 1 Find the standard deviation for a security that has three one - year returns of - 6 % , 8 % , and 1 7 % respectively. 9 . 4 6 % 5 . 4 8 % 6 . 5 7 % 4 . 5 6 % 7 . 8 9 %

The force constant of a massless spring is 2 5 . 0 N / m . A mass of 0 . 4 5 kg is oscillating in simple harmonic motion at the end of the spring

Determine a model of how sales volume (svol) depends on the number of contacts a salesperson has. Try a model of the form Y = a + b X and one of the form Y = a + b X + cX2. For Y = a + b X R2 = Model...

The file Telser.xls contains data on the demand for cigarettesuse this data to obtain a model of cigarette demand. This data was extracted from Telser (1962). Locate file from...

The following is a table of quarterly sales for a company for the last four years. Use a regression model to predict the sales in 1998. Year Sales Quarter 1 Quarter 2 Quarter 3 Quarter 4 1994 1,000...