Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bear Pants is a national paint manufacturer and roteler. Ift (Click the icon to View additional indormabon.) Assume that management has specfied a 215 tapet

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Bear Pants is a national paint manufacturer and roteler. Ift (Click the icon to View additional indormabon.) Assume that management has specfied a 215 tapet rate of retum. Read the reauicments The company is segmented into the dvisiont: Paint stores gtranded retal location), Consumer (oaint nold through atores such as Sear Homo Depot and Lowe's). Automodve (abes to auto manutacturem). Intermational, and Adininistraton. The foliowing is selected typothelical Evisional information for ite companys two lapgest divetions: Pairt. stores and Consumer (in thecsands of dolars) Requirement 1. Calculate each division's ROI Fint enter the formusa, then calculate the ROI for buch division. IEnter the ROI as a peccent rourdind in the n Requirement 2 Calculate each division's cales margin. Interpret your results anterpret your results. The Division is more protiadie on each dollar of sates Requirement 3, Calculate each divis ons cepital tumover Inderpet your resulta. First enter the formula, then calculate the capdai turnevar for each division. (Round to two decimal places.) Bear Paints is a ratonal pant manufscturer and retaine. (Click the icon to vew addeconal intomation) Assume that management has specfied a 21% target rate of retum. Fiead the requirenents. Requirement 3, Calculate each idvison's captal humover, Mterpret your results: First enier the formula, then calculate the capital fuenover for each division. (Round to two decimal places ) The Dision ia more efcient in generating swes with it assets Requirement 4. Use the expanded Rol fommla to confirm your mesuls trom Requrernent 1 Intorpret your fesulas Fint enter the expanded ROI fomula, then calculate the fROI for each division: (Enter the ROF as a peccent rounded to the nearest hundredih of a percentage, xx. The Consumer Division's profitabdity on each dolat of sales is than the Paint Stores Division's profeabdty. Hewever, the Paint store Division's eftcency is significantly Consumer Division's efficency These resuls cause the Paint Stores Divaion's ROi to be the Consumer Divisions ROI. Roquirement 5. Calculale each division's Fi. Interpret your results and offer recommendabons for ariy division with negative A1. Firk enter the formula, then calculate the RI far each divsion, (Enter the amount in thousands Use porentheses or a minus sign for negative residyat incornets) Bear Paints is a natiensl paint manufactuzor and retaler (Cick the icon fo viow aditichal informwior) Assume that mahagement fas specified a 21% target rate of roturn. Road the roqurnments Fint enter the sormula, then calculase the Fi tar each divivian (Eriser the amount in theusands. Use parsnthetes or a minus sign for negat ve residuar incomitis) Intepret your resuls and ofler recommendations lor any divicion with negative RI. meeting manapoments target rate of roturn, The shevild work on impreving ita Ingroving tha may help the division behieve positive resqua inceme. Requirement 6, Removed by instructor Requirement 7. Descrbe some of tie taciors that management considens when seting is minimum target rate of Data table The company is sogmented inlo five diveions: Paint Steres (brarded rotail beation) Contumer (pant nold trough atoris such as sears, Home Depot, and Low'v). Automotive (saies to auto manulacturers). intermationol, and Adirinistration. The foloeing b selected hypothetical dvisional informaticn for the compary/s Avo largest tovisions. Paint 5tores and Consumer (in thousands of dolart) Requirement s. Explain why some firms peeler to use Rd rather than ROI for petormance measurement. Goar Paints is a nafichal puint manufacturer and retalee FA (Click the icen to winw addibonal information.) Assume that inanagement has specified a 21% tacget rate of retum: Data table Fiead the requicemerts inlerprot your fesalts and ofter recommendations for any dvion with negatvo R. The corgany is segmented thbo five dvisiona:Paint 5 tores (branded retail igcation). Corsurher (paint sold treugh stores wuch as Seare Horke Depot, and Lowes), Automotive (sales to auto marudacturera). Internationab, and Adminiteration. The folowing is stected hrpethetical divitional information foc the oorgany's two largent divsions: Paint. meeting mansgements target rate of retum. The Slores and Consumer (in thousands of dolies). achieven pos the retiduar inceme. Requirement 6. Remaved by instructor Requirement 7. Deschibe scme of the factors that mansgement considers whan seding its minimum targo Reouitement A. Explin why some feme prefer bo use Rl rather than RQI for performance meauuement: Ri does a beisar job of Requirecnent 9 . Englain why budget versus actual performance reports are insumicient for evaluating the pertormance of investmen centers invatment oenters are tespontsblor for Asrume that minaperect that spotitet a 21s target reie of celum. Bead 1he coaishimats Requirement 1, Culoyale sach divoonz RO Requirwment 2, Cabsbte each division's silns muron, Interet your melits marpresyour mem The Data table The company is segnented into five divisors: Paint Stores (branced real locasion), Consumer (paint sold theough stores such as seark. Heme Depot and Lowo'). Actonotive (soles to auto manulacturers). Intomatenal and Administration. The followerg is selocted hypothescal divaconar information for the compam/s wo largest divisions? Paint Sbres and Cansumer (in thousands of dolara) (Fiek the icon to vew addecaral information.) Read the reculrements Qwision it more effosene in generasng sakt with its asseta. Data table The company is segmenthd inte five dikions: Paint Stores ibranded relal lecation), Consumer (gains solg through stores sych as Sears, Horne Popet, and Lowela). Autorotive (bates to auto iranufacturers), international, and Administration. The following is selected nypothetical elvisienal information for the company? fwo largest divisions: Paint Stores and Consumer (in thousands of dolars). Bear Paints is a natonal paint manufacturer and retailer. (Click the icon to view additional information.) Assume that management has specfied a 21% targot rate of retum Read the requirements. Requirement 5. Calculate each division's RI. Interpret your results and offer recommendations for any division with negative RI. First enter the formula, then calculate the RI for each division. (Enter the amount in thousands. Use parentheses or a minus sign for negative residual Interpret your results and offer recommendations for any division with negative R. meeting management's target rate of return. Tho should work on improving its Requirement 6. Removed by instructor Requirement 7 . Describe some of the factors that management considers when setting its minimum target rate of return. Bear Paints is a national paint manufacturer and retailer. (Click the icon to viow additional information.) Assume that management has specified a 21% target rate of return. Read the requirements Interpret your results and offer recommendations for any division with negative RI. meeting management's target rate of return. The should work on improving its Requirement 6. Removed by instructor Requirement 7. Describe some of the factors that management considers when setting its minimum target rate of return. Requirement 8. Explain why some firms prefer to use RI rather than ROI for performance measurement. Ri does a better job of Requirement 9. Explain why budget versus actual performance reports are insufficient for evaluating the performance of investment cen Investment centers are responsible for Budget versus actual perform

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions