Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

View Policies Current Attempt in Progress Marigold Industries has manufactured prefabricated houses for over 20 years. The houses are constructed in sections to be assembled

image text in transcribed
image text in transcribed
View Policies Current Attempt in Progress Marigold Industries has manufactured prefabricated houses for over 20 years. The houses are constructed in sections to be assembled on customers' lots. Marigold expanded into the precut housing market when it acquired Jensen Company, one of its suppliers. In this market, various types of lumber are precut into the appropriate lengths, banded into packages, and shipped to customers' lots for assembly. Marigold designated the Jensen Division as an investment center. Marigold uses return on investment (ROI) as a performance measure with investment defined as average operating assets. Management bonuses are based in part on ROI. All investments are expected to earn a minimum rate of return of 18.3%. Jensen's ROI has ranged from 20.9% to 23.0% since it was acquired. Jensen had an investment opportunity in 2020 that had an estimated ROI of 19.8%. Jensen management decided against the investment because it believed the investment would decrease the division's overall ROI Selected financial information for Jensen are presented below. The division's average operating assets were $12.269,000 for the year 2020 MARIGOLD INDUSTRIES Jensen Division Selected Financial Information For the Year Ended December 31, 2020 Sales $25,106,000 Contribution margin 8.973,000 Controllable margin 2.551,952 Calculate the following performance measures for 2020 for the Jensen Division (Round Rol to 1 decimal place, e.g. 1.5.) Return on investment (ROI) 90 (2 Residual income e Textbook and Media

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Global Financial Accounting And Reporting Principles And Analysis

Authors: Peter Walton, Walter Aerts

1st Edition

1844802655, 9781844802654

More Books

Students also viewed these Accounting questions

Question

What is the relationship between negative thinking and depression?

Answered: 1 week ago

Question

A tha A 11i, 140 . e 414 D. 1114 A tha A 11i, 140 . e 414 D. 1114

Answered: 1 week ago

Question

Please help me evaluate this integral. 8 2 2 v - v

Answered: 1 week ago