Reference no: EM132978764
Question - Zulas, a national manufacturer of lawn-mowing and snow-blowing equipment, segments its business according to customer type: professional and residential. The following divisional information was available for the past year:
Residential
Net Sales Revenue 570,000
Operating Income 60,450
Average Total Assets 186,000
Professional
Net Sales Revenue 1,090,000
Operating Income 150,400
Average Total Assets 376,000
Management has a 23?% target rate of return for each division.
Requirements -
1. Calculate each division's ROI. Round all of your answers to four decimal places.
2. Calculate each division's profit margin ratio. Interpret your results.
3. Calculate each division's asset turnover ratio. Interpret your results.
4. Use the expanded ROI formula to confirm your results from Requirement 1. What can you conclude?
|
By how much will each division income increase
: The two divisions have recently negotiated a transfer price of $47 per unit for the 20,000 units. By how much will each division's income increase
|
|
Compute the average annual net cash inflow
: Average number of days per year that weather conditions allow skiing at Preston Valley 142 days. Compute the average annual net cash inflow
|
|
Examine the current work system design
: Analyze Nike's current vision, mission, business strategy, operation strategy, supply chain, total quality management, just-in-time philosophy, forecasting meth
|
|
Identify the business problem
: Investigate Samsung Pay, which applications of FinTech / innovation in business or society. Identify the business problem, describe how innovation helped solve
|
|
Calculate each division profit margin ratio
: Management has a 23% target rate of return for each division. Calculate each division profit margin ratio
|
|
Effective long-term implementation of the system
: Hasnain owns a small-to-medium sized textile fabric manufacturing company. The business includes various production processes, such as spinning, fabric manufact
|
|
Calculate his gross pay
: Calculate his gross pay, assuming his tips are included in the overtime rate determination. How much does Albicious Foods need to contribute to Nigel's wages
|
|
What risks do auditors face with these different locations
: What risks do auditors face with these different locations where inventory is stored - Do you think the value of a company is impacted by its capital structure
|
|
What are two mitigating strategies for the bullwhip effect
: What are two mitigating strategies for the bullwhip effect and why are they effective?
|