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Wildhorse produces and sells two products-aluminum and vinyl. Each of these products is made in a dedicated manufacturing facility, and the product line managers are
Wildhorse produces and sells two products-aluminum and vinyl. Each of these products is made in a dedicated manufacturing facility, and the product line managers are evaluated based on the product line's return on investment. The following data is from the most recent year of operations. Aluminum Vinyl Sales $3,002,000 $4,518,000 Variable costs Direct fixed costs 1,219,000 1,444,700 2,000,000 2,715,000 1,533,600 1,500,000 Average assets Calculate the margin and asset turnover for each product line. (Round answers to 2 decimal places, e.g. 5.12 and 5.12%.) Aluminum Vinyl Margin Asset turnover eTextbook and Media Calculate return on investment for each product line. (Round ROI to 2 decimal places, e.g. 5.12%.) Aluminum Vinyl ROI e Textbook and Media Both product line managers would like to improve their respective returns on investment, and each manager has a different idea about how to accomplish this. If the aluminum product line manager was able to increase sales volume such that the new asset turnover was 2.20 times. What would be the new operating income? (Round variable cost ratio to 2 decimal places, e.g. 5.25 and final answers to 0 decimal places, e.g. 12,500.) Operating income What would be the new return on investment? (Round ROI to 2 decimal places, e.g. 5.12%.) New ROI e Textbook and Media Both product line managers would like to improve their respective returns on investment, and each manager has a different idea about how to accomplish this. If the vinyl product line manager was able to reduce variable cost per unit by 8%, what would be the new operating income? (Round Operating income to O decimal places, e.g. 12,500.) New operating income $ What would be the new return on investment? (Round ROI to 2 decimal places, e.g. 5.12%.) New ROI eTextbook and Media
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