The vice president of operations of Pavone Company is evaluating the performance of two divisions organized as investment centers. Invested assets and condensed income statement data for the past year for each division are as follows:

The vice president of operations of Pavone Company is evaluating the performance of two divisions organized as investment centers. Invested assets and condensed income statement data for the past year for each division are as follows:

De Learning Cengage Learning eBook Show Me How Calculator Divisional performance analysis and evaluation Divisional Income Statements Final Questions and condensed income weet data for the past year for The vice president of operations of Pavone Company is evaluating the performance of two divisions organized as investment centers Invested each division are as follows: Sales Business Division $2,350,000 1.200.000 855.000 78.333 Consumer Division $2.550.000 1,345.000 873.500 Cost of goods sold Operating expenses Invested wets 2,318,182 Required: 1. Prepare condensed divisional income statements for the year ended December 31, assuming that there were no service detent charges 2. Uning the DuPont formule for retum on investment, determine the given me and retum on investe each division required, round your final answer to one decimal place 3. W management want a minimum acceptable reum of 18.50N, determine the real income for each division. Use the ninus sign to indicate a negative income. Round final answers to nearest whole dollar 4. Discuss the evaluation of the two division, aing the performance measures previously determined Divisional Income Statements Previous Check My Work 2 more Check My Woes remaining The vice president of operations of Pavone Company is evaluating the performance of two divisions organized as investment centers, Invest each division are as follows: Sales Business Division $2,350,000 1,260,000 855,000 783,333 Consumer Division $2.550,000 1,345,000 873,500 Cost of goods sold Operating expenses Invested assets 2,318,182 Required: 1. Prepare condensed divisional income statements for the year ended December 31, assuming that there were no service department charges. 2. Uning the DuPont formula for return on investment, determine the profit margin investment tumover, and return on investment for each division. If required, round your final answers to one decimal place 3. If management wants a minimum acceptable return of 18.50%, determine the residual income for each division. Use the minus sign to indicate a negative income. Round final answers to nearest whole dollar 4. Discuss the evaluation of the two divisions, using the performance measures previously determined. visional Income Statements My Work 2 more Check My Work uses remaining Diviale al income Statem&IS 1. Prepare and wonal income statements for the year ended December 31, asuming that there were no service department charge Pavone Company Score: 24/40 Divisional Income Statements For the Year Ended December 31 Sales Cost of goods sold Gross profit $2,350,000.00 1,260,000.00 $2,550,000.00 1,345,000.00 5 Operating expenses 855,000.00 873,500.00 Income from operations Points: 8/10 Chebu Wa Check My Work 2 more Cheo My Work uses remaining eBook 1. For ench division, subtract operating expense bomo profit 2. Using the Dufost formula for eam on investment in the profiter e ntumowe, and return on investment for each d on Frequired, round your finalwers to one deal place Profit Margin Investment Turnover Divisions Business Division Consumer Division Checy Won 2. income from operations divided by a soft margin. Sales divided by ind u l t move More for the m management w e a ptable rum of the for each division Uthei r to indicate a negative income Round near to area whole dolar Divisions n Business i Com Check My Work 2 more Che My Wont remaining Previous De Learning Cengage Learning eBook Show Me How Calculator Divisional performance analysis and evaluation Divisional Income Statements Final Questions and condensed income weet data for the past year for The vice president of operations of Pavone Company is evaluating the performance of two divisions organized as investment centers Invested each division are as follows: Sales Business Division $2,350,000 1.200.000 855.000 78.333 Consumer Division $2.550.000 1,345.000 873.500 Cost of goods sold Operating expenses Invested wets 2,318,182 Required: 1. Prepare condensed divisional income statements for the year ended December 31, assuming that there were no service detent charges 2. Uning the DuPont formule for retum on investment, determine the given me and retum on investe each division required, round your final answer to one decimal place 3. W management want a minimum acceptable reum of 18.50N, determine the real income for each division. Use the ninus sign to indicate a negative income. Round final answers to nearest whole dollar 4. Discuss the evaluation of the two division, aing the performance measures previously determined Divisional Income Statements Previous Check My Work 2 more Check My Woes remaining The vice president of operations of Pavone Company is evaluating the performance of two divisions organized as investment centers, Invest each division are as follows: Sales Business Division $2,350,000 1,260,000 855,000 783,333 Consumer Division $2.550,000 1,345,000 873,500 Cost of goods sold Operating expenses Invested assets 2,318,182 Required: 1. Prepare condensed divisional income statements for the year ended December 31, assuming that there were no service department charges. 2. Uning the DuPont formula for return on investment, determine the profit margin investment tumover, and return on investment for each division. If required, round your final answers to one decimal place 3. If management wants a minimum acceptable return of 18.50%, determine the residual income for each division. Use the minus sign to indicate a negative income. Round final answers to nearest whole dollar 4. Discuss the evaluation of the two divisions, using the performance measures previously determined. visional Income Statements My Work 2 more Check My Work uses remaining Diviale al income Statem&IS 1. Prepare and wonal income statements for the year ended December 31, asuming that there were no service department charge Pavone Company Score: 24/40 Divisional Income Statements For the Year Ended December 31 Sales Cost of goods sold Gross profit $2,350,000.00 1,260,000.00 $2,550,000.00 1,345,000.00 5 Operating expenses 855,000.00 873,500.00 Income from operations Points: 8/10 Chebu Wa Check My Work 2 more Cheo My Work uses remaining eBook 1. For ench division, subtract operating expense bomo profit 2. Using the Dufost formula for eam on investment in the profiter e ntumowe, and return on investment for each d on Frequired, round your finalwers to one deal place Profit Margin Investment Turnover Divisions Business Division Consumer Division Checy Won 2. income from operations divided by a soft margin. Sales divided by ind u l t move More for the m management w e a ptable rum of the for each division Uthei r to indicate a negative income Round near to area whole dolar Divisions n Business i Com Check My Work 2 more Che My Wont remaining Previous