Rose Company has sales of $1,200,000 and operating assets of $800,000 and achieved a 10 percent ROI. 4 If Rose Company increases expenses by $20,000 and sales remain unchanged, what ROI will result? a) 7.5% b) Not able to be calculated from the information provided. c) 14.5%. d) 10%.
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- Solano Company has sales of $520,000, cost of goods sold of $380,000, other operating expenses of $51,000, average invested assets of $1,650,000, and a hurdle rate of 8 percent. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario’s impact on Solano’s ROI and residual income. (Note: Treat each scenario independently.) b. Operating expenses decrease by $10,500. What is return on investment? What is residual income? ThanksSolano Company has sales of $520,000, cost of goods sold of $380,000, other operating expenses of $51,000, average invested assets of $1,650,000, and a hurdle rate of 8 percent. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario’s impact on Solano’s ROI and residual income. (Note: Treat each scenario independently.)a. Company sales and cost of goods sold increase by 40 percent. What is the residual income? ThanksCompany XYZ is currently making sales of $200,000 . At this level , the variable expenses were $40,000 . Assume that company XYZ expects sales to increase $ 400,000 in the coming period with no change is expected to fixed expenses . How much is the expected change in profit ? a. Increase by $ 160,000 b. Cannot be determined c. Increase by $ 50,000 d. Increase by 40,000 e. Increase by $10,000
- Company XYZ is currently making sales of $200,000. At this level, the variable expenses were $160,000. Assume that company XYZ expects sales to increase to $250,000 in the coming period with no change is expected to fixed ?expenses. How much is the expected change in profit Increase by $50,000 .a O Increase by $160,000 .b O Increase by $10,000 .c O Cannot be determined d O Increase by 40,000 .e OCompany XYZ is currently making sales of $200,000. At this level, the variable expenses viere $160,000 . Assume that company XYZ expects sales to increase to $450,003 in coming period with no change is expected to fixed expenses. How much is the expected change in profit ? a- Increase by $ 10,000 b -Increase by 40,000 C- increase by $ 50,000 D-be determined E- Increase by $160,000Company XYZ is currently making sales of $200,000. At this level, the variable expenses were $160,000. Assume that company XYZ expects sales to increase to $450,000 in the coming period with no change is expected to fixed expenses. How much is the expected change in profit? a. Cannot be determined O b. Increase by $160,000 O c. Increase by $10,000 d. Increase by $50,000 е. Increase by 40,000
- Pine Corp. has revenues of $520,000 resulting in an operating income of $66,560. Invested assets total $611,000. Residual income is $24,000. Calculate the new residual income if sales increase by 10% and the profit margin and invested assets remain the same. (Do not round your intermediate calculations.) A $0 B $30,656 C $42,560 D $10,496Company XYZ made total sales of $250,000 during the month of December. The company also incurred total expenses of $210,000. Of that amount 60% was fixed expenses. Company XYZ expects sales to increase by 13% next month. What is the expected operating profit, in ($) value, next month?Select one:a. 45,200b. 61,580c. None of the given answersd. 166,000e. 40,000The company has predicted a sales increase of 12 percent. It has predicted that every item on the balance sheet will increase by 12 percent as well. Create the pro forma statements and reconcile them. (Input all answers as positive values. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Pro forma income statement Sales $ Costs Net income $ 43,456 Assets 37,094 6,362 Total Assets $ Pro forma balance sheet 28,448 Debt Equity 28,448 Total Debt and Equity What is the plug variable? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) The plug variable is dividends paid in the amount of $ $ 7,168 21,280 28,448
- Violet Company has sales of $463,000, net operating income of $248,000, average invested assets of $794,000, and a hurdle rate of 8.50 percent. Calculate Violet's return on investment and its residual income. Note: Enter your ROI answer as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%). Round your Residual Income (Loss) answer to the nearest whole dollar. Return on Investment (ROI) Residual Income (Loss) 31.23%The following information relates to Zinc Corporation for last year: Sales Revenue ($500,000), Net Operating Income ($25,000) and Degree of Operating Leverage (5). Sales at Zinc are expected to be $600,000 next year. Assuming no change in cost structure, this means that net operating income for next year should be: O a. $45,000 b. $125,000 O c. $30,000 O d. $50,000Company XYZ is currently making sales of $ 200,000, At this level, the variable expenses were $ 160,000. Assume that company XYZ expects sales to increase to $ 450,000 in the coming period with no change is expected to foed expenses How much is the expected change in profit?