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Latin America Foods is one of PepsiCo's divisions. For the most recent fiscal year-end, the division had assets of $950 million, operating income of
Latin America Foods is one of PepsiCo's divisions. For the most recent fiscal year-end, the division had assets of $950 million, operating income of $685 million, and sales revenue of $2,660 million. 1. Compute Latin America Foods' ROI, sales margin, and capital turnover. (Enter amounts in millions.) 2. Compute Latin America Foods' residual income, assuming the minimum acceptable rate of return is 20%. (Enter amounts in millions.) 1. Compute Latin America Foods' ROI, sales margin, and capital turnover. First enter the formula for ROI, and then calculate the ratio. (Enter the ROI as a percent rounded to the nearest tenth percent, "X.X".) ROI % Next enter the formula for sales margin, and then calculate the ratio. (Enter the sales margin as a percent rounded to the nearest tenth percent, "X.X".) Sales margin % Next enter the formula for capital turnover, and then calculate the ratio. (Round your answer to two decimal places, "X.XX".) Capital turnover times 2. Compute Latin America Foods' residual income, assuming the minimum acceptable rate of return is 20%. (Enter the rate of return as a whole percent. Round your answer to the nearest tenth of a million, "X.X".)
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