136 the following data relates to logan electric and its light bulb division light b 4308012

136 the following data relates to logan electric and its light bulb division light b 4308012

136) The following data relates to Logan Electric and its Light Bulb Division.

Light Bulb Division sales$7,500,000

Light Bulb Division operating income$750,000

Light Bulb Division total assets $3,000,000

Light Bulb Division current liabilities $550,000

Corporate target rate of return15%

Corporate weighted average cost of capital11%

Corporate effective tax rate35%

What is the Light Bulb Division's sales margin?

A) 250%

B) 10%

C) 18.33%

D) 25%

137) The following data relates to Logan Electric and its Light Bulb Division.

Light Bulb Division sales$7,500,000

Light Bulb Division operating income$750,000

Light Bulb Division total assets $3,000,000

Light Bulb Division current liabilities $550,000

Corporate target rate of return15%

Corporate weighted average cost of capital11%

Corporate effective tax rate35%

What is the Light Bulb Division's capital turnover?

A) 10.0

B) 4.0

C) 2.5

D) 5.5

138) The following data relates to Logan Electric and its Light Bulb Division.

Light Bulb Division sales$7,500,000

Light Bulb Division operating income$750,000

Light Bulb Division total assets $3,000,000

Light Bulb Division current liabilities $550,000

Corporate target rate of return15%

Corporate weighted average cost of capital11%

Corporate effective tax rate35%

What is the Light Bulb Division's Return on Investment (ROI)?

A) 25%

B) 10%

C) 250%

D) 18.33%

139) The following data relates to Logan Electric and its Light Bulb Division.

Light Bulb Division sales$7,500,000

Light Bulb Division operating income$750,000

Light Bulb Division total assets $3,000,000

Light Bulb Division current liabilities $550,000

Corporate target rate of return15%

Corporate weighted average cost of capital11%

Corporate effective tax rate35%

What is the Light Bulb Division's Residual Income (RI)?

A) $(375,000)

B) $420,000

C) $218,000

D) $300,000

140) The following data relates to Haven Corporation and its Northern Division.

Light Bulb Division sales$8,500,000

Light Bulb Division operating income$950,000

Light Bulb Division total assets $4,000,000

Light Bulb Division current liabilities $750,000

Corporate target rate of return15%

Corporate weighted average cost of capital10%

What is the Northern Division's Residual Income (RI)?

A) $600,000

B) $950,000

C) $400,000

D) $350,000

141) The Pasta Division of Whole Grain Corporation had sales of $5,500,000 and operating income of $1,375,000 last year. The total assets of the Pasta Division were $2,750,000, while current liabilities were $330,000. Whole Grain Corporation's target rate of return is 12%, while its weighted average cost of capital is 8%. The effective tax rate for the company is 30%.

What is the Pasta Division's sales margin?

A) 20.00%

B) 25.00%

C) 6.00%

D) 50.00%

142) The Pasta Division of Whole Grain Corporation had sales of $5,500,000 and operating income of $1,375,000 last year. The total assets of the Pasta Division were $2,750,000, while current liabilities were $330,000. Whole Grain Corporation's target rate of return is 12%, while its weighted average cost of capital is 8%. The effective tax rate for the company is 30%.

What is the Pasta Division's capital turnover?

A) 4.0

B) 5.0

C) 16.7

D) 2.0

143) The Pasta Division of Whole Grain Corporation had sales of $5,500,000 and operating income of $1,375,000 last year. The total assets of the Pasta Division were $2,750,000, while current liabilities were $330,000. Whole Grain Corporation's target rate of return is 12%, while its weighted average cost of capital is 8%. The effective tax rate for the company is 30%.

What is the Pasta Division's Return on Investment (ROI)?

A) 25.00%

B) 6.00%

C) 50.00%

D) 200.00%

144) The Pasta Division of Whole Grain Corporation had sales of $5,500,000 and operating income of $1,375,000 last year. The total assets of the Pasta Division were $2,750,000, while current liabilities were $330,000. Whole Grain Corporation's target rate of return is 12%, while its weighted average cost of capital is 8%. The effective tax rate for the company is 30%.

What is the Pasta Division's Residual Income (RI)?

A) $1,045,000

B) $768,900

C) $1,155,000

D) $330,000

145) The Southern Division of Amelia Corporation had sales of $6,500,000 and operating income of $1,200,000 last year. The total assets of the Southern Division were $3,000,000, while current liabilities were $450,000. Amelia Corporation's target rate of return is 10%, while its weighted average cost of capital is 6%. The effective tax rate for the company is 30%.

What is the Southern Division's Return on Investment (ROI)?

A) 25.00%

B) 6.00%

C) 40.00%

D) 200.00%

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