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777dan777 [17]
3 years ago
9

The Atlantic Division of Start Production Company reported the following results for 2020: Sales $5,500,000 Variable Costs $2,20

0,000 Controllable Fixed Costs $2,540,000 Average Operating Assets $4,000,000 The minimum required rate of return of Start Production Company is 16%.
A. What is the controllable margin of the Atlantic Division for 2020?
B. What is the Return on Investment (ROI) for the Atlantic Division for 2020?
C. What is the Residual Income for the Atlantic Division for 2020?
Business
1 answer:
Yanka [14]3 years ago
7 0

Answer:

a. Controllable margin = Sales - Variable costs - Controllable fixed cost

=5,500,000 - 2,200,000 - 2,540,000

= $760000  

b. Return on Investment (ROI) =   Controllable margin / Average Operating Assets * 100

=  760,000 / 4,000,000 * 100

=0.19 * 100

=19%

c. Residual income = Controllable margin - Minimum required return  (4000000 * 16% = 640000)

=760,000 - 640,000

=$120,000

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amm1812

Answer: Bar codes

Explanation:

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3 0
3 years ago
River rock, inc. just paid an annual dividend of $2.80. the company has increased its dividend by 2.5 percent a year for the pas
ohaa [14]
The answer to this should be 24.65.
I could be wrong but I think you are suppose to add.

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8 0
3 years ago
If the minimum attractive rate of return is 7%, which alternative should be chosen assuming identical replacement (like kind exc
ira [324]

Answer:

The alternative that should be chosen assuming identical replacement is:

Alternative B.

Explanation:

a) Data and Calculations:

Alternatives:

                                                A            B

First Cost                           $5,000     $9,200

Uniform Annual Benefit     $1,750      $1,850

Useful life, in years                4              8

Rate of return                       7%            7%

Annuity factor                   3.387          5.971

Present value of annuity $5,927.25 $11,046.35

Net cash flow                 $927.25     $1,846.35

b) Alternative B yields a higher return than Alternative A.  Since the two alternatives are based on the same rate of return, Alternative B will bring in a higher annual benefit, even when discounted to the present value.

7 0
2 years ago
Arntson, Inc., manufactures and sells two products: Product R3 and Product N0. The annual production and sales of Product of R3
Vitek1552 [10]

Answer:

$671.92

Explanation:

Note: The full question is attached as picture below

Product R3

Labor-related cost = 40736/7200*5400

Labor-related cost = $30,552

Production orders = 65970/1600*1000

Production orders = $41,231

Order size = 433175/7100*3100

Order size = $189,133

Total overhead = Labor-related cost + Production orders + Order size

Total overhead = $30,552 + $41,231 + $189,133

Total overhead = $260,916

Annual production and sales of Product of R3 = 900 u nit

Overhead cost per unit = Total overhead / Unit

Overhead cost per unit = $260,916 / 900

Overhead cost per unit = $289.92

Direct material = $226

Direct labor = (26*6) = $156

Unit product cost = Overhead cost per unit + Direct material + Direct labor

Unit product cost = $289.92 + $226 + $156

Unit product cost = $671.92.

3 0
2 years ago
HELP BUSINESS ENGLISH!
yulyashka [42]
I believe the answer should be C. autonomy.
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