Eban wares is a division of a major corporation the

Reference no: EM13575581

Eban Wares is a division of a major corporation. The following data are for the latest year of operations. Sales of 10,000,000, Net operating income of 950,000, average operating assets of 4,000,000 and the company inimum required rate of return is 14%. The manager of Eban Wares has an opportunity to add a project with the following characteristcs: cost of new equipment of 1,200,000, additional revenues of 3,000,000, and additional expenses of 2,100,000.

a) what is the division's margin (before the new project)?

b) what is the division's turnover (before the new project)?

c) what is the division's return on investment (ROI) (before the new project)?

d) what is the division's resifual income (before the new project)?

e) what is the division's margin (after the new project is added)?

f) what is the division's turnover (after the new project is added)?

g) what is the division's return on investment (ROI) (after the new project is added)?

h) what is the division's residual income (after the new project is added)?

Reference no: EM13575581

Questions Cloud

Explain how a donee can sell inestment property receivd by : explain how a donee can sell inestment property receivd by gift and recognize neither gain nor loss when the selling

Strikers inc sells soccer goals to customers over the : strikers inc. sells soccer goals to customers over the internet. history has shown that 3 of strikers goals are faulty

Aggie company issued 5 - year bonds with a par value of : aggie company issued 5 - year bonds with a par value of 35000000 and a 7 annual stated rate of interest on january 2

A car with a sticker price of 42850 with factory and dealer : assume the car can be purchased for 0 down for 60 months in lieu of rebate. a car with a sticker price of 42850 with

Eban wares is a division of a major corporation the : eban wares is a division of a major corporation. the following data are for the latest year of operations. sales of

Thorpe mfg inc is currently operating at only 85 percent : thorpe mfg. inc. is currently operating at only 85 percent of fixed asset capacity. current sales are 630000. how much

Ventura corporation purchased machinery on january 1 2009 : ventura corporation purchased machinery on january 1 2009 for 630000. the company used the sum-of-the-years-digits

From the first e-activity the article indicates : from the first e-activity the article indicates approximately 90 of the companies in the study were sensitive to the

Prepare an incremental analysis for the special order round : gruden company produces golf discs which it normally sells to retailers for 6.84 each. the cost of manufacturing 24400

User Account

All Pages