Question: based on guidelines you can answer two questions ac con Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division 2.

based on guidelines you can answer two questions
based on guidelines you can answer two questions ac con Required: 1.
Compute the margin, turnover, and return on investment (ROI) for each division
2. Compute the residual income (oss) for each division 3. Assume that
each division is presented with an investment opportunity that would yield a
8% rate of return. a. If performance is being measured by ROI,
which division or divisions will probably accept the opportunity? b. If performance

ac con Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division 2. Compute the residual income (oss) for each division 3. Assume that each division is presented with an investment opportunity that would yield a 8% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Req 38 Compute the margin, turnover, and return on investment (ROI) for each division. (Do not round intermediate calculations Round your answers to 2 decimal places.) Margin Turnover ROI Division 0.04% 5.00 20.00 % A Division 0.02 % 4.00 6.00% Division 0.03 % % 4.00 12.00% B ODO Reg 2 > 3 Book Stavos Company's Screen Division manufactures a standard screen for high-definition televisions (HDTV). The cost per screen is: Variable cost per screen $ 117 Fixed cost per screen 27+ Total cost per screen $144 "Based on a capacity of 780,000 screens per year. Part of the Screen Division's output is sold to outside manufacturers of HDTVs and part is sold to Stavos Company's Quark Division which produces an HDTV under its own name. The Screen Division charges $182 per screen for all sales The net operating income associated with the Quark Division's HDTV is computed as follows: Selling price per unit $ 576 Variable cost per unit: Cost of the screen $ 182 Variable cost of electronic parts 231 Total variable cost Contribution margin Fixed costs per unit Net operating incont per unit 5 82 "Based on a capacity of 170,000 units per year The Quark Division has an order from an overseas source for 4,800 HDTVS. The overseas source wants to pay only $388 per unit. 413 163 81 Required: 1. Assume the Quark Division has enough idle capacity to fill the 4,800-unit order. Is the division likely to accept the $388 price or to reject it? 2. Assume both the Screen Division and the Quark Division have idle capacity. Under these conditions, what is the financial advantage Idisadvantage for the company as a whole (on a per unit basis) if the Quark Division rejects the $388 price? foron Division is operating at capacity and could sell all of its screens to 3 1.48 Soints Net operating income per unit $ 82 Based on a capacity of 170.000 units per year. The Quark Division has an order from an overseas source for 4,800 HDTVS. The overseas source wants to pay only $388 per unit. Required: 1. Assume the Quark Division has enough idle capacity to fill the 4.800-unit order is the division likely to accept the $388 price or to reject it? 2. Assume both the Screen Division and the Quark Division have idle capacity. Under these conditions, what is the financial advantage (disadvantage) for the company as a whole (on a per unit basis) if the Quark Division rejects the $388 price? 3. Assume the Quark Division has idle capacity but that the Screen Division is operating at capacity and could sell all of its screens to outside manufacturers. Under these conditions, what is the financial advantage (disadvantage) for the company as a whole (on a per unit basis) If the Quark Division accepts the $388 unit price? eBook Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume both the Screen Division and the Quark Division have idle capacity. Under these conditions, what is the financial advantage (disadvantage) for the company as a whole (on a per unit basis) if the Quark Division rejects the 5388 price? (Any "Financial Disadvantage" amounts should be entered as a negative.) (40) Financial advantage (disadvantage) on a per unit basis TUDIR DIVISION 85 on order from an overseas source for 4,800 HDTVs. The overseas source wants to pay only $388 per unit. Required: 1. Assume the Quark Division has enough idle capacity to fill the 4,800 unit order. Is the division likely to accept the $388 price or to reject it? 2. Assume both the Screen Division and the Quark Division have idle capacity. Under these conditions, what is the financial advantage (disadvantage) for the company as a whole (on a per unit basis) if the Quark Division rejects the $388 price? 3. Assume the Quark Division has idle capacity but that the Screen Division is operating at capacity and could sell all of its screens to outside manufacturers. Under these conditions, what is the financial advantage (disadvantage) for the company as a whole (on a per unit basis) if the Quark Division accepts the $388 unit price? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume the Quark Division has idle capacity but that the Screen Divbion is operating at capacity and could sell all of its screens to outside manufacturers. Under these conditions, what is the financial advantage (disadvantage) for the company as a whole (on a per unit basis) if the Quark Division accepts the $388 unit price? (Any "Financial Disadvantage amounts should be entered as a negative.) Show less Financial advantage (disadvantage on a per unit basis Return to quest Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division Sales $ 15,900,000 $ 28,720,000 $ 20,720,000 Average operating assets $ 3,180,000 $ 7,180,000 $ 5,180,000 Net operating income $ 636,000 $ 430,800 $ 621,600 Minimum required rate of return 7.00 7.58 12.00 Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 8% rate of return a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Reg 38 Compute the margin, turnover, and return on investment (ROI) for each division. (Do not round Intermediate calculations Round your answers to 2 decimal places.)

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