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1. The Alfa Division of Braixen Company makes and sells only one product. Annual data on the Alfa Division's single product follow: Unit selling price,

1. The Alfa Division of Braixen Company makes and sells only one product. Annual data on the Alfa Division's single product follow:

  • Unit selling price, 120
  • Unit variable cost, 85
  • Total fixed costs, 200,000
  • Average operating assets, 750,000
  • Minimum required rate of return, 12%

If Alfa sells 16,000 units per year, the RETURN ON INVESTMENT would be ________%.

2. WI Inc has the following information for its Bread Division: residual income of 27,500; net operating income of 60,000; interest expense of 25,000, sales of 300,000, average operating assets of 250,000. The minimum required rate of return is ____________%.

For interim calculations use 5 decimal places. Round off the final answer to 2 decimal places

3. DXXX Inc has the following financial data: net operating income of 250,000; interest expense of 45,000, average operating assets of 1,265,750. The return on investment (ROI) is ___________%.

For interim calculations use 5 decimal places. Round off the final answer to 2 decimal places

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