Nue Wines Has the Following Data for Its Three Divisions

question 25

Essay

Nue Wines has the following data for its three divisions for the year: $$\begin{array} { | l | r | r | r | } \hline & \text { Ein } & \text { Zwei } & \text { Drei } \\\hline \text { Revenues } & \$ 12,000,000 & \$ 38,000,000 & \$ 28,000,000 \\\hline \text { Cost of sales } & 7,695,000 & 19,000,000 & 14,000,000 \\\hline \begin{array} { l } \text { Allocated } \\\text { corporate } \\\text { overhead }\end{array} & 720,000 & 2,280,000 & 2,100,000 \\\hline \begin{array} { l } \text { Other general \& } \\\text { administration }\end{array} & 1,585,000 & 11,000,000 & 11,000,000 \\\hline \begin{array} { l } \text { Return on } \\\text { Investment }\end{array} & 15 \% & 12 \% & 9 \% \\\hline\end{array}$$
Required:
a.Compute divisional operating income for each of the divisions.Assume taxes are 35%.b.Calculate the profit margin ratio for each division.c.Calculate the asset turnover for each division.

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Definitions:

Basis

The underlying support or foundation for an idea, argument, or process; in materials, it could refer to the primary component or substance that forms the starting point.

Tolerance Position Letters

In engineering, symbols used in geometric dimensioning and tolerancing to represent the permissible limits of variation in the position of parts.

External Dimensions

Refers to measurements that describe the outer limits or size of an object or component.

Internal Dimensions

Measurements within an object, space, or container, referring to its size or volume from the inside.