Answer Happy

Required information [The following information applies to the questions displayed below.] A food manufacturer reports the following for two of its divisions for a recent year. Beverage Cheese ($ millions) Division Division $2,700 $4,493 Invested assets, beginning Invested assets, ending Sales 2,612 4,419 2,700 3,944 653 Operating income 368 1. Compute return on investment. 2. Compute profit margin. 3. Compute investment turnover for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute return on investment. (Enter your answers in millions.) Return on Investment Choose Numerator: 1 Choose Denominator: Investment Center 1 Beverage 1 Cheese 1 < Required 1 Return on Investment Return on investment = = = Required 2 >
Required 1 Required 2 Required 3 Compute profit margin. (Enter your answers in millions.) Profit Margin Choose Numerator: 1 Choose Denominator: Investment Center 1 Beverage 1 Cheese 1 < Required 1 = = = = Required 3 Profit Margin Profit margin >
Required 1 Required 2 Required 3 Compute investment turnover for the year. (Enter your answers in millions.) Investment Turnover Choose Numerator: 1 Choose Denominator: Investment Center 1 = Beverage 1 = Cheese 1 < Required 2 Required 3 Investment Turnover Investment turnover
Assume that each of the company's divisions has a required rate of return of 7%. Compute residual income for each division. (Enter your answers in millions.) ($ millions) Beverage Cheese Beverage Cheese Targeted return Target income Residual Income Residual income