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Carla Vista produces and sells two products-aluminum and vinyl. Each of these products is made in a dedicated manufacturing facility, and the product line managers
Carla Vista produces and sells two products-aluminum and vinyl. Each of these products is made in a dedicated manufacturing facility, and the product line managers are evaluated based on the product line's return on investment. The following data is from the most recent year of operations. Aluminum Vinyl Sales $3,800,000 $3,450,000 Variable costs 1,634,000 1,691,250 Direct fixed costs 1,653,000 1,534,500 Average assets 2,000,000 1,500,000 Your answer is correct. Calculate the margin and asset turnover for each product line. (Round answers to 2 decimal places, eg. 5.12 and 5.12%.) Aluminum Vinyl 13.5 % 6.5 % Margin 1.9 2.3 Asset turnover e Textbook and Media Assistance Used Attempts: unlimited (a2) Your answer is correct. Calculate return on investment for each product line. (Round ROI to 2 decimal places, eg. 5.12%.) Aluminum Vinyl ROI 25.65 % 14.95 % (c1) Your answer is incorrect. Both product line managers would like to improve their respective returns on investment, and each manager has a different idea about how to accomplish this. If the aluminum product line manager was able to increase sales volume such that the new asset turnover was 2.20 times, what would be the new operating income? (Round variable cost ratio to 2 decimal places, e.g. 5.25 and final answers to O decimal places, e.g. 12,500.) Operating income $ What would be the new return on investment? (Round ROI to 2 decimal places, eg. 5.12%.) New RI %
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