Business, 11.12.2019 05:31 sotocindy023
Return on investment (roi) and residual income (l011-1, l011-2) "i know headquarters wants us to add that new product line," said dell havasi, manager of billings company's office products division. "but i want to see the numbers before i make any division's return on investment (roi) has led the company for three years, and i don't want any letdown." billings company is a decentralized wholesaler with five autonomous divisions. the divi- sions are evaluated on the basis of roi, with year-end bonuses given to the divisional managers who have the highest rols. operating results for the company's office products division for the most recent year are given below: s ales variable expenses contribution margin fixed expenses net operating income divisional operating assets $10,000,000 6,000,000 4,000,000 3,200,000 $ 800,000 $ 4,000,000 the company had an overall return on investment (roi) of 15% last year (considering all divisions). the office products division has an opportunity to add a new product line that would require an additional investment in operating assets of $1,000,000. the cost and revenue character istics of the new product line per year would be: sales variable expenses fixed expenses $2,000,000 60% of sales $640,000 required: 1. compute the office products division's roi for the most recent year; also compute the roi as it would appear if the new product line is added. 2. if you were in dell havasi's position, would you accept or reject the new product line? explain. 3. why do you suppose headquarters is anxious for the office products division to add the new product line? 4. suppose that the company's minimum required rate of return on operating assets is 12% and that performance is evaluated using residual income. a compute the office products division's residual income for the most recent year, also compute the residual income as it would appear if the new product line is added. s, if you were in dell havasi's position, would you ac reject the new product line? explain.
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Which of the following would classify as a general education requirement
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Three pounds of material a are required for each unit produced. the company has a policy of maintaining a stock of material a on hand at the end of each quarter equal to 30% of the next quarter's production needs for material a. a total of 35,000 pounds of material a are on hand to start the year. budgeted purchases of material a for the second quarter would be:
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Tariffs and quotas are often imposed when a government is more responsive to interests, and the benefits of those trade restrictions are often ; concentrated producer; widely dispersed consumer; widely dispersed consumer; concentrated
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Return on investment (roi) and residual income (l011-1, l011-2) "i know headquarters wants us to add...
Mathematics, 16.12.2020 18:10
Mathematics, 16.12.2020 18:10