ROI; RI
Schulz GmbH, a German company, set an 18 percent target rate of
return for its U.S. division for the year. The U.S. division
generated $35,100,000 of annual revenue on average assets of
$22,500,000. The division’s variable costs were 45 percent of
sales, and fixed costs were $6,750,000. Compute the following items
for the U.S. division:
a. ROI
Note: Round percentage to one decimal point
(i.e. round 4.555% to 4.6%).
Answer
%
b. Residual income: $Answer
c. Profit margin
Note: Round percentage to one decimal point
(i.e. round 4.555% to 4.6%).
Answer
%
d. Asset turnover
Note: Round amount to one decimal point (i.e.
round 4.555 to 4.6).