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PLEASE ASAP 4. (4 pts.) Eban Wares is a division of a major corporation. The following data are for the latest year of operations: Sales.........
PLEASE ASAP
4. (4 pts.) Eban Wares is a division of a major corporation. The following data are for the latest year of operations: Sales......... Net operating income...... Average operating assets The company's minimum required rate of return... $9,000,000 $1,050,000 $4,200,000 13% Required: a. What is the division's margin? b. What is the division's turnover? c. What is the division's return on investment (ROI)? d. What is the division's residual income? 5. (6 pts.) The Rockets Co. and the Warriors Co. are both subsidiary companies owned by the NBA Jam Co. The Rockets Co. makes a product called the Brick with a variable cost per unit of $9 and total fixed expenses of $400,000. The Rockets Co. can sell the product to other companies for $18. The Rockets Co. has a capacity of 10,000 units, but is currently selling 9,000 units to outside companies (thus, there is idle capacity of 1,000 units). The Warriors Co. uses the Brick" in one of its products called the "Championship". The Warriors Co. can buy the Brick from an outside company for $16 per unit. If the Warriors Co. needs 2,000 units of the Brick, what would be the range of acceptable transfer prices between the Rockets Co. and the Warriors CoStep by Step Solution
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