Question: refwr to exhibit 10.4 attached graph, A) Calculate the margin and Asset turnover for centex yarns three sivision. Show that margin x assett turnover equals



C&C Sports continuing case 10.32 (LO 3) Return on investment After seeing the results of the segment analysis for the Nylon Fibers division, James Cameron wants all three divisions focusing on the correct avenues for improve ing division performance. Refer to Exhibit 10.4 and the related information on page 10-14 to answer the following questions Required a. Calculate the margin and asset turnover for Centex Yarns' three divisions. Show that margin x asset turnover equals the return on investment for each division as reported in the text. b. Compare the margin and asset turnover for the three divisions and make suggestions for increas- ing the return on investment of each division. C&C Sports continuing case 10.32 (LO3) Return on investment After seeing the results of the segment analysis for the Nylon Fibers division, James Cameron wants all three divisions focusing on the correct avenues for improv- ing division performance. Refer to Exhibit 10.4 and the related information on page 10-14 to answer the following questions Required a. Calculate the margin and asset turnover for Centex Yarns' three divisions. Show that margin x asset turnover equals the return on investment for each division as reported in the text. b. Compare the margin and asset turnover for the three divisions and make suggestions for increas- ing the return on investment of each division. E EXHIBIT 10.4 Segment margin income statement for Centex Yams. D Polyester Nylon Fibers Division Rope Division Fibers Division $ 10,600,000 $ 6,725,000 $ 8,650,000 $ 25,975,000 Total 5,543,000 1,334,000 3.723,000 2,368,000 649,000 3,708,000 4,414,000 890,000 3,346,000 12,325,000 2,873.000 10,777,000 1 2 Revenue 3 Less variable expenses 4 Cost of goods sold 5 Selling & administrative 6 Contribution margin 7. Less traceable fixed expenses 3 Cost of goods sold 9 Selling & administrative 10 Segment margin 11 Common fixed expenses 12 Net operating income 1,685,000 1,382,000 236,000 174,000 $ 1,802,000 $ 2,152,000 $ 2,208,000 273,000 865,000 5,275,000 683,000 4,819,000 2,886,000 $ 1,933,000 www.t E EXHIBIT 10.4 Segment margin income statement for Centex Yams. D Polyester Nylon Fibers Division Rope Division Fibers Division $ 10,600,000 $ 6,725,000 $ 8,650,000 $ 25,975,000 Total 5,543,000 1,334,000 3.723,000 2,368,000 649,000 3,708,000 4,414,000 890,000 3,346,000 12,325,000 2,873.000 10,777,000 1 2 Revenue 3 Less variable expenses 4 Cost of goods sold 5 Selling & administrative 6 Contribution margin 7. Less traceable fixed expenses 3 Cost of goods sold 9 Selling & administrative 10 Segment margin 11 Common fixed expenses 12 Net operating income 1,685,000 1,382,000 236,000 174,000 $ 1,802,000 $ 2,152,000 $ 2,208,000 273,000 865,000 5,275,000 683,000 4,819,000 2,886,000 $ 1,933,000 www.t C&C Sports continuing case 10.32 (LO3) Return on investment After seeing the results of the segment analysis for the Nylon Fibers division, James Cameron wants all three divisions focusing on the correct avenues for improv- ing division performance. Refer to Exhibit 10.4 and the related information on page 10-14 to answer the following questions. Required a. Calculate the margin and asset turnover for Centex Yarns' three divisions. Show that margin x asset turnover equals the return on investment for each division as reported in the text. b. Compare the margin and asset turnover for the three divisions and make suggestions for increas- ing the return on investment of each division
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