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i need help solving this problem. Question 4 (15 marke) The followina information is avaltakile for the Fizz Division of Pops Company for Year 2
i need help solving this problem.
Question 4 (15 marke) The followina information is avaltakile for the Fizz Division of Pops Company for Year 2 . Required: Part 1. What was Fizz Division's margin in Year 2? A) 10.00% B) Dont pick this C) 11.40% D) 9.80% (C) 11.00% F) 10.20N G) 15.40% Part 2. What was Firz Division's turnover in Year 2? A) 1.10 B) Dont pick this!! C) 1.80 D) 2,10 E) 2.50 F) 1.30 (G) 1.50 Part 3: What was Fizz Division's ROI in Year 2 ? A) 38.50% B) 23.94% C) 13.78% D) 16.50% E) 17.64% F) 5 thousand percent G) 11.22% Part 4: What was Fizz Division's residual income in Year 2? A) $501,640.00 B) ($2.61,400.00) C) $897,400.00 D) $885,400.00 E) $906,400.00 F) $760.040.00 G) ($258,400.00) Answer Parts 5 to 8 using the following additional information. The Fizz Division has prepared its budget for Year 3 and it anticipates that its financial results in Year 3 will be identical to what it experienced in Year 2 (ie Sales of \$4,560,000, Operating income of \$501,600, etc). After the budget was completed however, an employee brought forward a proposal for an additional project (code-named PUNCH) with these nmineted amnints: Part 5 Assuming the Fizz Division accepted the PUNCH project, what would be the Fizz Division's total ROI for Year 3? A) 25.98% B) 9.02% C) 5.98% D) 10.98% E) 1598% F) 0.98% G) 20.35% Part 6: It Pops Company uses ROI as a performance measure when evaluating managers, would you expect the Fizz Division to accept the PUNCH project? A) Yes B) No Part 7. Assuming the Fizz Division accepted the PUNCH project, what would be the residual income for the Fizz Division in Year 3 ? (The minimum required rate of return on projects is still 25.00%.) A) ($366,608.00) B) $346.608.00 C) ($362,608.00) D) ($370,608.00) E) ($342,008,00) F) ($350.608.00) G) $354,608.00 Part 8. If Pops Company uses Residual Income as a performance measure when evaluating managers, would you expect the Foz Division to accept the PUNCH project Step by Step Solution
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