Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Schulz GmbH, a German company, has set a target rate of return for this year of 18 percent for its US division . The US

Schulz GmbH, a German company, has set a target rate of return for this year of 18 percent for its US division The US division generated annual revenue of $35,100,000 on average assets of $22,5 million. The division's variable costs accounted for 45 percent of sales, and fixed costs were $6,750,000. 

Calculate the following items for the US portion:

A. ROI
Note: Round the percentage to one decimal place (ie from 4.555% to 4.6%).
Reply


%

B. Residual income: $Answer



C. Profit margin
Note: Round the percentage to one decimal place (ie from 4.555% to 4.6%).
Reply

%

D. asset turnover
Note: Round the amount to one decimal place (ie from 4.555 to 4.6).

Step by Step Solution

3.39 Rating (146 Votes )

There are 3 Steps involved in it

Step: 1

A ROI Return on Investment is calculated as net income divided by average total assets Net income ca... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting Foundations and Evolutions

Authors: Michael R. Kinney, Cecily A. Raiborn

8th Edition

9781439044612, 1439044619, 978-1111626822

More Books

Students also viewed these Accounting questions

Question

Find a value of x such that 3 1 [ a = [,7 a . - dt - dt. t 1/4

Answered: 1 week ago