Violet Company has sales of $458,000, net operating income of $248,000, average invested assets of $805,000,...

 
 

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Violet Company has sales of $458,000, net operating income of $248,000, average invested assets of $805,000, and a hurdle rate of 9.25 percent. Calculate Violet's return on investment and its residual income. (Enter your ROI answer as a percentage rounded to two decimal places, ().e., 0.1234 should be entered as 12.34%). Round your Residual Income (Loss) answer to the nearest whole dollar.) Return on Investment (ROI) Residual Income (Loss) M10-13 (Algo) Calculating Cost-Plus Transfer Price [LO 10-6] Medlock Company has two divisions, Wheel and Chassis. The Wheel Division manufactures a wheel assembly that the Chassis Division uses. The variable cost to produce this assembly is $7.00 per unit; full cost is $8.00. The component sells on the open market for $15.00. What will the transfer price be if Medlock uses a pricing rule of variable cost plus 40 percent? (Round your answer to 2 decimal places.) Transfer price The Western Division of Claremont Company had net operating income of $141,000 and average invested assets of $560,000. Claremont has a required rate of return of 13.00 percent. Western has an opportunity to increase operating income by $38,000 with a $96,000 increase in average invested assets. Compute Western Division's return on investment and residual income currently and if it undertakes the project. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%). Round your Residual Income (Loss) answers to the nearest whole dollar.) Return on Investment (ROI) Residual Income (Loss) Current Proposed Project % Violet Company has sales of $458,000, net operating income of $248,000, average invested assets of $805,000, and a hurdle rate of 9.25 percent. Calculate Violet's return on investment and its residual income. (Enter your ROI answer as a percentage rounded to two decimal places, ().e., 0.1234 should be entered as 12.34%). Round your Residual Income (Loss) answer to the nearest whole dollar.) Return on Investment (ROI) Residual Income (Loss) M10-13 (Algo) Calculating Cost-Plus Transfer Price [LO 10-6] Medlock Company has two divisions, Wheel and Chassis. The Wheel Division manufactures a wheel assembly that the Chassis Division uses. The variable cost to produce this assembly is $7.00 per unit; full cost is $8.00. The component sells on the open market for $15.00. What will the transfer price be if Medlock uses a pricing rule of variable cost plus 40 percent? (Round your answer to 2 decimal places.) Transfer price The Western Division of Claremont Company had net operating income of $141,000 and average invested assets of $560,000. Claremont has a required rate of return of 13.00 percent. Western has an opportunity to increase operating income by $38,000 with a $96,000 increase in average invested assets. Compute Western Division's return on investment and residual income currently and if it undertakes the project. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%). Round your Residual Income (Loss) answers to the nearest whole dollar.) Return on Investment (ROI) Residual Income (Loss) Current Proposed Project %