Question
4 (14 marks) The following information is available for the Guitar division of Music Company for 2020: Sales Operating income Average operating assets Minimum required
4 (14 marks) The following information is available for the Guitar division of Music Company for 2020: Sales Operating income Average operating assets Minimum required rate of return on projects Required: Part 1: What was Guitar Division's margin in 2020? A) 24.80% B) 24.00% C) 23.20% D) 24.40% E) Don't pick this F) 23.60% G) 28.80% Part 2: What was Guitar Division's turnover in 2020? Don't pick this!! $ 22,262,500 $ 5,432,050 $ 3,250,000 32.40% A) B) 7.45 6.85 6.45 E) 7.85 F) 6.65 G) 7.15 Part 3: What was Guitar Division's ROI in 2020? A) 184.76% B) 226.08% C) 159.60% D) 167.14% E) 165.88% F) 5 thousand percent G) 152.22% Part 4: What was Guitar Division's residual income in 2020? A) $5,453,090.00 B) $1,050,040.00 C) $2,812,984.20 $4,379,050.00 E) $5,444,090.00 F) $5,432,090.00 G) $1,053,040.00
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