Quaker Foods North America is another one of​ PepsiCo’s divisions. For fiscal year 2012​, the division had assets of $966 million, operating income of $695 million, and sales revenue of $2,636 million.

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Quaker Foods North America is another one of​ PepsiCo’s divisions. For fiscal year 2012​, the division had assets of $966 million, operating income of $695 million, and sales revenue of $2,636 million.

A )Compute Quaker​’s ROI, sales​ margin, and capital turnover

b)

Compute Quaker​’s residual​ income, assuming the minimum acceptable rate of return is 25​%.

Darshita Changed status to publish August 30, 2020
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Answer:

A)

Operating income / Total assets = ROI
$695 / $966 = 71.9  %

 

Operating income / Sales revenue = Sales margin
$695 / $2,636 = 26.4

 

Sales revenue / Total assets = Capital turnover
$2,636 / $966 = 2.73 times
Darshita Changed status to publish August 30, 2020

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