Question :
61. The Electronic Division’s margin is: A. 8%.B. 10%.C. 11%.D. 80%.
62. The Electronic Division’s turnover is: A. 08.B. 1.C. 11.D. 8.
: 1208297
61. The Electronic Division’s margin is:
A. 8%.
B. 10%.
C. 11%.
D. 80%.
62. The Electronic Division’s turnover is:
A. 08.
B. 1.
C. 11.
D. 8.
63. Trigon Company has two divisions, the Retail Sales Division and the Wholesale Sales Division. The following information was gathered for the two divisions in 2012:
Trigon Company has set a target return on investment (ROI) of 15% for both divisions. Based on ROI, which division appears to have performed better?
A. Retail sales division.
B. Wholesale sales division.
C. Both division have the same results.
D. The answer cannot be determined using the information provided.
64. Trigon Company has two divisions, the Retail Sales Division and the Wholesale Sales Division. The following information was gathered for the two divisions in 2012:
Assuming that these are the only divisions of Trigon Company, calculate ROI for the company as a whole.
A. 15.7%
B. 16.6%
C. 16.3%
D. 32.3%
65. Retail Sales and Wholesale Sales are the only divisions of Trigon Company.
The company has $1,000,000 in operating assets that are not assigned to either of the divisions and $200,000 in corporate expenses that are not reflected in the information above. Based on this information, what is the ROI for the company as a whole?
A. 15.7%
B. 32.3%
C. 15%
D. The answer cannot be determined using the information provided.
66. Trigon Company has two divisions, the Retail Sales Division and the Wholesale Sales Division. The following information was gathered for the two divisions in 2012:
Trigon Company has set a target return on investment (ROI) of 15% for both divisions
Which of the following statements is accurate?
A. Residual income for the retail sales division was $100,000
B. Residual income for the wholesale sales division was $600,000
C. Residual income for the retail sales division was $600,000
D. None of the other answers are correct.
67. In the current year, the New Products Division of Testar Company had operating income of $8,000,000 and operating assets of $44,800,000. Testar has set a target return on investment (ROI) of 16% for each of its divisions.
Which of the following statements is incorrect?
A. The New Products division yielded an ROI that was lower than the target ROI.
B. Residual income for the New Products division was $832,000.
C. The New Products division yielded an ROI that was higher than the target ROI.
D. All of the other answers are correct.
68. The New Products Division, of Testar Company, has developed a potential new product that would require $8,500,000 in operating assets and would be expected to provide $1,400,000 in operating income each year. Testar has set a target return on investment (ROI) of 16% for each of its divisions.
Which of the following statements is accurate?
A. The new product is acceptable because it will yield an ROI that is higher than the target ROI.
B. The new product will yield residual income of $40,000.
C. The new product will decrease the company wide ROI.
D. The new product is acceptable because it will yield an ROI that is higher than the target ROI and will yield residual income of $40,000.
69. For 2012, the New Products Division, of Testar Company, had operating income of $8,000,000 and operating assets of $44,800,000. The New Products Division has developed a potential new product that would require $8,500,000 in operating assets and would be expected to provide $1,400,000 in operating income each year. Testar has set a target return on investment (ROI) of 16% for each of its divisions. Assuming that the new product is put into production, calculate the division’s ROI.
A. 17.9%
B. 17.6%
C. 16.5%
D. The answer cannot be determined using the information provided.
70. For 2012, the New Products Division, of Testar Company, had operating income of $8,000,000 and operating assets of $44,800,000. The New Products Division has developed a potential new product that would require $8,500,000 in operating assets and would be expected to provide $1,400,000 in operating income each year. Testar has set a target return on investment (ROI) of 16% for each of its divisions. Assuming that the new product is put into production, calculate the residual income for the division.
A. $872,000
B. $832,000
C. $528,000
D. $672,000
