POST ACC211 Unit 7 Quiz C9 Performance Measurement

June 9, 2016

Question
Question 1

Chace Products is a division of a major corporation. Last year the division had total sales of \$21,300,000, net operating income of \$575,100, and average operating assets of \$5,000,000. The company’s minimum required rate of return is 12%.

The division’s residual income is closest to:

\$575,100

\$1,175,100

\$(1,980,900)

\$(24,900)

Response Feedback:

Question 2

Chace Products is a division of a major corporation. Last year the division had total sales of \$21,300,000, net operating income of \$575,100, and average operating assets of \$5,000,000. The company’s minimum required rate of return is 12%.

The division’s margin is closest to:

26.2%

23.5%

2.7%

11.5%

Question 3

The West Division of Shekarchi Corporation had average operating assets of \$620,000 and net operating income of \$80,100 in March. The minimum required rate of return for performance evaluation purposes is 14%.

What was the West Division’s minimum required return in March?

\$80,100

\$86,800

\$11,214

\$98,014

Question 4

Chace Products is a division of a major corporation. Last year the division had total sales of \$21,300,000, net operating income of \$575,100, and average operating assets of \$5,000,000. The company’s minimum required rate of return is 12%.

The division’s return on investment (ROI) is closest to:

49.0%

11.5%

0.3%

2.2%

Question 5

Aide Industries is a division of a major corporation. Data concerning the most recent year appears below:

The division’s margin is closest to:

21.8%

5.0%

23.0%

28.0%

Question 6

Chace Products is a division of a major corporation. Last year the division had total sales of \$21,300,000, net operating income of \$575,100, and average operating assets of \$5,000,000. The company’s minimum required rate of return is 12%.

The division’s turnover is closest to:

3.82

4.26

0.12

37.04