3.
Eber Wares is a division of a major corporation. The following data are for the latest year
of operations:
Sales
$
30,600,000
Net operating
income
$
1,179,000
Average operating
assets
$
8,970,000
The company’s
minimum required
rate of return
18.0
%
Required:
a.
What is the division’s margin?
(Round your answer to 2 decimal places. Omit the "%"
sign in your response.)
Profit margin
________%
b.
What is the division’s turnover?
(Round your answer to 2 decimal places.)
Asset turnover
ratio
____________
c.
What is the division’s return on investment (ROI)?
(Round your answer to 2 decimal
places. Omit the "%" sign in your response.)
Return on investment
__________%
d.
What is the division’s residual income?
(Negative amount should be indicated by a minus
sign. Omit the "$" sign in your response.)
Residual income
$
4.
Licuado Juice Company has four product lines; Orange, Tomato, Carrot, and Grape. Shown
below is last year's income statement segmented by product line:
Orange
Tomato
Carrot
Grape
Sales
$67,000
$33,000
$24,500
$46,000
Variable expenses
23,400
10,600
10,700
17,700
Contribution margin
43,600
22,400
13,800
28,300
Traceable fixed expenses
11,200
7,800
8,100
6,000