Listed below is selected financial information for the Western Division of the Hinzel Company

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Listed below is selected financial information for the Western Division of the Hinzel Company for last year.
Amount ........................................Account (thousands)
Average working capital........................ $ 625
General and administrative expenses .......75
Net sales............................................... 4,000
Average plant and equipment ................1,775
Cost of goods sold ..................................3,525
If Hinzel treats the Western Division as an investment center for performance measurement purposes, what is the before-tax return on investment (ROI) for last year?

C3 Performance Measure 2015the following would be the primary measure used by Alfa Inc. in their balancedscorecard?

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Question 40:1C3-LS58Albert Hathaway recently joined Brannen University as the chief informationofficer of the University Computing Services Department. His assigned task isto help reduce the recurrent problem of cost overruns due to uncontrolledcomputer usage by the user community, while at the same time not curtailingthe use of information technology for research and teaching. To ensure goalcongruence, which one of the following algorithms should be used to allocatethe cost of the University Computing Services Department to otherdepartments within the university?

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113.James Webb is the general manager of the Industrial Product Division, and his performance is measured using the residual income (RI) method. Webb is reviewing the followed forecasted information for his division for the coming year:If the imputed interest charge is 15% and Webb wants to achieve an RI target of $2 million, what will costs have to be in order to achieve the target? A. $9,000,000.B. $10,800,000.C. $23,620,000.D.$25,150,000.E. $25,690,000.Let X = budgeted costs (to achieve profit target). Then, $2,000 = [$30,000 - X] - [0.15 × ($1,800 + $17,200)]. X = $25,150,000.Difficulty: 2 MediumLearning Objective: 19-02 Explain the use and limitations of residual income (RI) for evaluating investment centers

 

Listed below is selected financial information for the Western Division of the Hinzel Company for last year.

Amount

Account  (thousands)

Average working capital                                   $ 625

General and administrative expenses                         75

Net sales                                                  4,000

Average plant and equipment                              1,775

Cost of goods sold                                         3,525

If Hinzel treats the Western Division as an investment center for performance measurement purposes, what is the before-tax return on investment (ROI) for last year?

 

A. 19.79%

B. 22.54%

C. 16.67%

D. 34.78%