1.DallasProducts is a division of a major corporation. The following data are for the most recent year of operations:

Sales$38,180,000

Net operating income$3,658,960

Average operating assets$9,700,000

The company's minimum required rate of return14%

The division's residual income is closest to:

• $(3,877,840)
• $2,300,960
• $3,658,960
• $5,016,960

2.ABCIndustries is a division of a major corporation. Data concerning the most recent year appears below:

Sales$17,570,000

Net operating income$860,930

Average operating assets$4,950,000

The division's margin is closest to:

• 17.4%
• 23.5%
• 4.9%
• 18.6%

3.ABCIndustries is a division of a major corporation. Data concerning the most recent year appears below:

Sales$17,810,000

Net operating income$783,640

Average operating assets$4,640,000

The division's return on investment (ROI) is closest to:

• 4.40%
• 16.89%
• 13.04%
• 1.40%

4.DallasProducts is a division of a major corporation. The following data are for the most recent year of operations:

Sales$37,480,000

Net operating income$3,308,960

Average operating assets$9,000,000

The company's minimum required rate of return15%

The division's margin used to compute ROI is closest to:

5.Given the following data:

Average operating assets$504,000

Total liabilities$23,520

Sales$168,000

Contribution margin$85,680

Net operating income$45,360

Return on investment (ROI) is:

6.ABCIndustries is a division of a major corporation. Data concerning the most recent year appears below:

Sales$17,810,000

Net operating income$765,830

Average operating assets$5,100,000

The division's turnover is closest to:

7.Which of the following willNOTresult in an increase in return on investment (ROI), assuming other factors remain the same?

Multiple Choice

• An increase in sales.
• An increase in operating assets.
• An increase in net operating income.
• A reduction in expenses.

8.GemIndustries is a division of a major corporation. Last year the division had total sales of $24,048,000, net operating income of $2,765,520, and average operating assets of $6,012,000. The company's minimum required rate of return is 17%.

Required:

a. What is the division's margin?(Round your percentage answer to 2 decimal places.)

b. What is the division's turnover?(Round your answer to 2 decimal places.)

c. What is the division's return on investment (ROI)?(Round percentage your answer to 2 decimal places.)

Margin?

Turnover?

Return on investment?

9.If net operating income is $43,000, average operating assets are $215,000, and the minimum required rate of return is 12%, what is the residual income?

Multiple Choice

• $25,800
• $8,600
• $60,200
• $17,200

10.The NorthDivision of XYZCorporation had average operating assets of $1,120,000 and net operating income of $305,200 in January. The company uses residual income to evaluate the performance of its divisions, with a minimum required rate of return of 21%.

Required:

What was the NorthDivision's residual income in January?

Residual income?