Question
Calculate the Profit Margin, Asset Turnover and ROI for the information given for Jefferson Injection Molding Corporation. Each column represents a separate operating division with
Calculate the Profit Margin, Asset Turnover and ROI for the information given for Jefferson Injection Molding Corporation. Each column represents a separate operating division with manufacturing facilities. In addition, calculate the Residual Income for the minimum rates of return. Please note that each plant has different minimums due to the various dates the plants were constructed and major competitive improvements were implemented.
The second grid below calculates the what-if values based on the amounts in lines 4-7, i.e. the base amounts. Calculate the new what-if amounts at the bottom. You will then calculate the same ROI and RI factors as above and rank 1-4 as appropriate. The company utilizes Just-in-time inventory concepts.
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