Mary's Auto Shop Inc. allows its divisions to operate as autonomous units. Their results for the current year were as follows:<\/p>
<\/p>
<\/p>
<\/p>
Sport<\/p>
Terrain<\/p>
City<\/p>
Revenues<\/p>
$1,700,000<\/p>
$800,000<\/p>
$6,000,000<\/p>
Current assets<\/p>
230,000<\/p>
40,000<\/p>
410,000<\/p>
Capital assets<\/p>
870,000<\/p>
660,000<\/p>
1,590,000<\/p>
Current liabilities<\/p>
100,000<\/p>
100,000<\/p>
500,000<\/p>
Net operating income<\/p>
232,000<\/p>
42,000<\/p>
602,000<\/p>
After-tax income<\/p>
186,000<\/p>
34,000<\/p>
482,000<\/p>
Weighted average cost of capital<\/p>
10%<\/p>
10%<\/p>
10%<\/p>
<\/p>
<\/p>
Required:<\/u><\/p>
For each division compute (to two decimal) the:<\/p>
1.Return on sales in %<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
2.Return on investment (to two decimal) based on total assets employed in %<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
3.Economic value added<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
4.Residual income based on net operating income<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>
<\/p>", "transcribed_text": "", "related_book": { "title": "Principles Of Accounting Volume 2 Managerial Accounting", "isbn": "0357364805, 9780357364802", "edition": "1st Edition", "authors": "OpenStax", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/2022\/04\/626124ab6f7b1_547626124ab246f0.jpg", "uri": "\/textbooks\/principles-of-accounting-volume-2-managerial-accounting-1st-edition-9780357364802", "see_more_uri": "" }, "free_related_book": { "isbn": "B0CVZBRKLH", "uri": "\/textbooks\/blackrock-nya-larry-fink-1st-edition-979-8224009084-312121", "name": "Blackrock Nya Larry Fink", "edition": "1st Edition" }, "question_posted": "2024-06-28 09:48:43", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/macon-vitamins-sells-a-variety-of-vitamins-and-herbal-supplements", "description": "Macon Vitamins sells a variety of vitamins and herbal supplements to small health food stores. Macon purchases the vitamins and supplements from leading manufacturers. Identify each of the following...", "stars": 3 }, { "url": "\/study-help\/psychology\/assess-your-own-assumptions-with-regard-to-these-paradigms-and-1980036", "description": "Assess your own assumptions with regard to these paradigms and articulate which paradigm reflects your own worldview.", "stars": 3 }, { "url": "\/0.25-m3-insulated-pistoncylinder", "description": "A 0.25-m3 insulated pistoncylinder device initially contains 0.7 kg of air at 20\u00b0C. At this state, the piston is free to move. Now air at 500 kPa and 70\u00b0C is allowed to enter the cylinder...", "stars": 3 }, { "url": "\/study-help\/questions\/help-me-please-answer-all-subquestions-use-the-data-in-9895799", "description": "help me please Answer all sub-questions Use the data in the table below to answer this question. Table 1 Cash flows for projects A, B \\& C. Answer all four sub-questions. a) Calculate the payback...", "stars": 3 }, { "url": "\/study-help\/questions\/assume-that-neha-assar-uses-a-job-order-costing-system-8299872", "description": "Assume that Neha Assar uses a job order costing system. For the basic cost category of direct materials explain how Neha's job cost sheet would differ from a job cost sheet for a manufacturing...", "stars": 3 }, { "url": "\/study-help\/questions\/vanessa-is-planning-on-conducting-a-study-that-looks-into-999731", "description": "Vanessa is planning on conducting a study that looks into how listening to music impacts learning. Specifically, she wants to know how well people can learn while listening to their favorite, or...", "stars": 3 }, { "url": "\/study-help\/questions\/please-read-smith-v-goguen-415-us-566-1974-4888014", "description": "Please read Smith v. Goguen , 415 U.S. 566 (1974), available at https:\/\/scholar.google.com\/scholar_case?case=14723025391522670978&hl=en&as_sdt=2&as_vis=1&oi=scholarr After reading the above case,...", "stars": 3 }, { "url": "\/study-help\/questions\/explain-what-early-thoughts-and-beliefs-existed-about-what-caused-1405503", "description": "Explain what early thoughts and beliefs existed about what caused mental illness. Describe one of the psychological traditions and how it furthered the beliefs about what causes mental illness from...", "stars": 3 }, { "url": "\/study-help\/questions\/13-the-following-data-pertain-to-wistron-companys-two-products-999461", "description": "13. The following data pertain to Wistron Company's two products: Product X Product Y Sales in dollars $100,000 $80,000 Contribution margin ratio 48% 30% If fixed expenses for the company as a whole...", "stars": 3 }, { "url": "\/study-help\/questions\/rose-corporation-manufactures-stateoftheart-dvd-players-it-is-a-division-3671935", "description": "Rose Corporation manufactures state-of-the-art DVD players. It is a division of Sany TV, which manufactures televisions. Rose sells the DVD players to Sany, as well as to retail stores. The following...", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/the-following-data-for-a-pottery-company-pertain-to-the-4288372", "next": "\/study-help\/questions\/one-example-of-a-current-liability-is-which-of-the-4288374" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "Mary's Auto Shop Inc. allows its divisions to operate as autonomous units.", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/marys-auto-shop-inc-allows-its-divisions-to-operate-as-4288373" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } }d": "1" } }