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scoray [572]
3 years ago
5

Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last

year's results: Adams Division Jefferson Division Net (after-tax) income $ 605,000 $ 315,000 Total capital employed 4,000,000 3,250,000 Washington's actual cost of capital was 12%.
Required: 1. Calculate the EVA for the Adams Division. If required, enter a negative EVA as a negative number by entering your answer with the minus sign. 605,000 315,000 4,000,000 3,250,000 2. Calculate the EVA for the Jefferson Division. If required, enter a negative EVA as a negative number by entering your answer with the minus sign.
Business
1 answer:
Gwar [14]3 years ago
4 0

Answer:

$125,000 and -$75,000

Explanation:

The computation of the economic value added is shown below:

As we know that

Economic Value Added is

= Net (after-tax) income - (Capital employed × Actual cost of capital)

For Adams Division, it is

= $605,000 - ($4,000,000 × 12%)

= $605,000 - $480,000

= $125,000

And for Jefferson Division, it is

= $315,000 - ($3,250,000 × 12%)

= $315,000 - $390,000

= -$75,000

We simply applied the above formulas

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  • applied degree at a two year college
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Explanation:

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3 years ago
Michelle Townsend owns stock in National Computers. Based on information in its annual report, National Computers reported after
bixtya [17]

Answer:

a. $1.80

b. 18.33 times

Explanation:

The computation of the earning per share is shown below:

a. Earning per share = (Net income after tax) ÷ (Number of shares)

                               = ($9,216,000) ÷ (5,120,000 shares)

                               = $1.80

b. And, the Price-earnings ratio = (Market price per share) ÷ (Earning per share)

= $33 ÷ $1.80

= 18.33 times

6 0
2 years ago
Before introducing a new product to the​ market, a food products company conducts market research to identify the​ lifestyles, p
solmaris [256]

Answer: Sociocultural

 

Explanation: Socioculture refers to the independent operating factors that affect the perspectives of individuals living in the society as a whole. These include the education system, law, lifestyle and religion etc.

The organisations nowadays carefully analyze these factors before introducing a product as these factors are the determinants of one's preferences and wants.

For example- Before entering into the markets of India, mc donalds decided to not to serve beer, pork or beef due to the religious beliefs of the individuals.

7 0
3 years ago
A manufacturing company that produces a single product has provided the following data concerning its most recent month of opera
ZanzabumX [31]

Answer:

$71,240

Explanation:

The computation of the total gross margin under absorption costing is shown below:

As we know that

Gross Margin = Sales - Variable Manufacturing Cost - Fixed Manufacturing Overhead For Units Sold

Sales (2,740 units × $131) $358,940

Less Manufacturing Costs  

Direct Materials (2,740 units × $44) $120,560

Direct Labor (2,740 units × $19) $52,060

Variable Manufacturing Overhead (2,740 units × $13) $35,620

Fixed Manufacturing Overhead ($85,260 ÷ 2,740 units ÷ 2,940 units) $79,460

Gross Margin                         $71,240

We simply applied the above formula

6 0
3 years ago
M and M, Inc. produces a product that has a variable cost of $4.90 per unit. The company's fixed costs are $37,200. The product
iragen [17]

Answer:

So the amount of sales needed will be $144000

Explanation:

We have given selling price per unit =$8

Variable cost per unit = $4.90

Contribution margin per unit = 8-4.90=$3.1

Contribution margin Ratio = \frac{contribution\ margin}{sales}=\frac{3.1}{8}=0.3875

Fixed costs =  $37200

Target profit= $18600

Required Sales amount to earn the desired profit = \frac{Fixed costs + Target net income}{Contribution Margin Ratio}

=\frac{37200+18600}{0.3875}=$144000

3 0
3 years ago
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