Answer:
(A) $425,000
(B) $24,350
Explanation:
(a) Average Operating Assets:
= (Beginning Operating Assets + Ending Operating Assets) ÷ 2
= ($390,000 + $460,000) ÷ 2
= $425,000
Therefore, the average operating assets is $425,000.
(b) Residual Income:
= Operating Income - (Minimum Rate of Return × Average Operating Assets)
= $66,850 - (10% × $425,000)
= $66,850 - $42,500
= $24,350
Honesty and working hard.
The return on investment for this division is (B) 20%.
<h3>
What is the return on investment (ROI)?</h3>
- Return on investment (ROI) or return on costs (ROC) is a ratio of net income to investment over time (costs resulting from an investment of some resources at a point in time).
- A high ROI indicates that the benefits of the investment outweigh the costs.
- ROI is used as a performance indicator to evaluate the efficiency of an investment or to compare the efficiencies of several investments.
- It is one method of connecting profits to capital invested in economic terms.
<h3>To find the return on investment for this division:</h3>
= income/average invested assets
= $40,000/$200,000
= return on investment
= 20%
Therefore, the return on investment for this division is (B) 20%.
Know more about return on investment here:
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Correct question:
The Midwest Division of Grainger Company has an investment center average invested assets of $200,000 and an investment center income of $40,000. What is the return on investment for this division?
(A) 500%
(B) 20%
(C) 25%
(D) 80%
Answer:
The EOQ is 353 units
Explanation:
The economic order quantity or EOQ is the quantoty that minimized the holding and ordering cost for invetory.
The formula for EOQ is,
EOQ = √(2*D*O) / H
Where,
- D is the annual demand in units
- O is the ordering cost per order
- H is the holding cost per unit per annum
The annual demand of oil filters by Sam is,
Annual demand = 52 * 150 = 7800 filters
The EOQ for Sam Auto Shop is,
EOQ = √(2*7800*16) / 2
EOQ = 353.27 Units rounded off to 353 units
Answer:
$25,400
Explanation:
Average for first 11 months = $20,600
Total amount for first 11 months = 11 x $20,600 = $226,600
Average for 12 months = $21,000
Total amount for 12 months = 12 x $21,,000 = $252,000
Amount received in December = $252,000 - $226,600 = $25,400
The organization received $25,400 in donations during December
