Question
Please answer the below questions and support your answers with formulas (The calculation formulas must be attached) Please. Q1. Oraby Industries is a division of
Please answer the below questions and support your answers with formulas
(The calculation formulas must be attached) Please.
Q1. Oraby Industries is a division of a major corporation. Last year the division had total sales of
SAR 23,380,000, operating income of SAR 2,828,980, and invested assets of SAR
10,000,000.
a. What is the division's profit margin?
b. What is the division's investment turnover?
c. What is the division's return on investment (ROI) using the DuPont formula?
d. What is the residual income if investors require a minimum return of 20%?
Q2. Taha Company produces joint three products: Product A, Product B, and Product C.
During the year, joint costs of processing the three products were SAR400, 000.The
the following information was given to you as follows:
Product Units Produced Selling price per unit Expenses per unit Selling price per unit
at split-off point (SR) after split-off point (SR) after split-off point (SR)
A 400,000 20 20 40
B 400,000 18 15 28
C 800,000 12 14 17
a. Allocate the joint costs using the physical output method.
b. Allocate the joint costs using the net realizable value method.
c. Allocate the joint costs using sales value at the split-off point method.
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