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Crane 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

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Crane 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 $2,400,000 $2,400,000 Variable costs 864,000 720,000 Direct fixed costs 1,296,000 1,533,600 Average assets 2,000,000 1,500,000 (1) 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 Margin 10 % 6.1 % Asset turnover 1.2 1.6 e Textbook and Media Attempts: unlimited Your answer is incorrect. a 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 $ 816000 What would be the new return on investment? (Round ROI to 2 decimal places, e.g. 5.12%.) New ROI 39.80 % e Textbook and Media (c2) 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 vinyl product line manager was able to reduce variable cost per unit by 8%, what would be the new operating income? (Round Berating income to O decimal places, es. 12,500.) New operating incomes What would be the new return on investment? (Round Rol to 2 decimal places, e8. 5.12%) New RI

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