A https://camdenccinstructure.com/courses/3788/assignmenQuestion 6-/1View PoliciesCurrent Attempt in ProgresspportMarigold Corp. recorded operating data for its autoaccessories division for the year.$610000SalesContribution margin140000Total direct fixed costs90000Average total operating assets200000How much is RỒI for the year if management is able toidentify a way to improve the contribution margin by $10000,assuming fixed costs are held constant?O 25%O 30%O 75%O 15%

Return on Investment (ROI: This is the financial ration that evaluates how efficiently the assets…

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Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 14.18E

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(J) Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division ADivision BDivision CSales$ 12,120,000$ 28,120,000$ 20,120,000Average operating assets$ 3,030,000$ 7,030,000$ 5,030,000Net operating income$ 496,920$ 449,920$ 503,000Minimum required rate of return7.00%7.50%10.00%Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 8% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity
Company A reported the following results for 2021: Sales $4,000,000 Variable costs 3,200,000 Controllable fixed costs 300,000 Average operating assets 2,500,000 Management is considering the following independent alternative courses of action in 2022 in order to maximize the return on investment for the division. Reduce controllable fixed costs by 10% with no change in sales or variable Reduce average operating assets by 10% with no change in controllable Increase sales $500,000 with no change in the contribution margin Instructions Compute the return on investment for 2021 Compute the expected return on investment for each of the alternative courses of action
Consider the following cost and pricing data of ABC Corp. on its Product X:Price: P120.00.per unitProfit Contribution: P90.00Proposed additional Cost: P3 per unit (for quality improvement)Current Profits: P2.4 millionSales: 100,000 units. A. Assuming that average variable costs are constant at all output levels, findABC Corp.’s total cost function before the proposed change.B. Calculate the total cost function if the quality improvement is implemented. UNANSWERED SUB-PARTSC. Calculate ABC Corp.’s break-even output before and after the change, assuming it cannot increase its price.D. Calculate the increase in sales that would be necessary with the quality improvement to increase profits to P2.7 million
Company A reported the following results for 2021:Sales $4,000,000Variable costs 3,200,000Controllable fixed costs 300,000Average operating assets 2,500,000 Management is considering the following independent alternative courses of action in 2022 in order to maximize the return on investment for the division.1. Reduce controllable fixed costs by 10% with no change in sales or variable costs.2. Reduce average operating assets by 10% with no change in controllable margin.3. Increase sales $500,000 with no change in the contribution margin percentage.Instructions(a) Compute the return on investment for 2021.(b) Compute the expected return on investment for each of the alternative courses of action.
Please assist in solving (not graded) Practive exercise Please provide details with formulas Business Decision Case. The following total cost data are for the Ralston manufacturing company which has a normal capacity per period of 400,000 units of product that sell for $18 each. For the foreseeable future, regular sales volume should continue at normal capacity of production. Direct Materials $1,720,00Direct Labor $ 1,120,000Variable Overhead 560,000Fixed Overheard (N1) 880,000Selling Expense (N2) 720,000Adminstrative Exp. Fixed 200,000------------------------------------ $5,200,000 ------------------------------------------------------------------ Notes1. Beyond nomral capacity, fixed overhead cost increase $30,,000 for each 20,000 units or fraction thereof until a maximum of 640,000 units is reached 2. Selling expense are at 10% sale commission. Ralston pays only one half o the regualr sales commission rates on any sale of 20,000 or more units.…
Dd3. For the most recent year, Petunia Company had the following data for its Clarkston Division, an investment center: total contribution margin—$671,110 budget, $695,741 actual; controllable fixed costs—$298,900 budget, $295,702 actual. Average operating assets for the year were $1,959,045. Determine the actual return on investment.
Company BCD has two departments where Net Income, Assets and Return on Investment (ROI) is tracked. Compute ROI. Net Income Average Assets ROI Dept A $350,000 $900,000 ____________ Dept B $100,000 $550,000 ____________ The company is implementing a target income of 10% of average assets. Compute the target income and residual income (loss) for each department. Net Income Average Assets Target Income Residual Income (Loss) Dept A $350,000 $900,000 ____________ ____________ Dept B $100,000 $550,000 ____________ ____________ please dont provide answer in an image format thank you
Explain the terms break-even point and margin of safety as used in cost-volume-profit (CVP) analysis in short term decision marking. b) Kack Ltd is a company which uses cost-volume-profit analysis for planning and control decisions. You have been given the following information for the just ended operational period: Total revenue GH¢3,600,000 The annual total cost GH¢3,510,000 Variable cost GH¢2,700,000 Required: As the Management Accountant, calculate the following for the use of management in decision making for the forthcoming period: i) Variable cost/sales ratio. (1 mark) ii) Contribution/sales (C/S) ratio. iii) Break-even sales (in value). ( iv) Margin of safety (in value). (1 mark) v) Margin of safety (in percentage). vi) The sales value which would yield a profit of GH¢270,000 assuming the C/S ratio and fixed costs remain unchanged. vii)The sales value which would yield a profit of 15% of that sales assuming the C/S ratio and the fixed costs remain unchanged. viii)…
Easy Removals offers a complete interstate, door-to-door solution for residential and commercial removals. As the market for removal services is very competitive, Easy Removals aims to deliver services at a low cost. Its management accountant prepared the following information - the growth, price-recovery, and productivity components that explain the change in operating income from 2020 to 2021. Growth Component Price-recovery Component Productivity Component Revenue effect $ 310,000 F $ 98,000 U - Cost effect $ 210,000 U $ 32,000 U $ 128,000 F Suppose that during 2021, the market growth rate in the industry was 10%. The number of jobs billed was 400 and 500 in 2020 and 2021, respectively. Any increase in market share more than 10%, and any change in selling price, are the result of Easy Removals’ strategic actions. Required: Compute how much of the change in operating income from 2020 to 2021 is due to the: (a) industry-market-size factor; (b)…
Consider the following cost and pricing data of ABC Corp. on its Product X:Price: P120.00.per unitProfit Contribution: P90.00Proposed additional Cost: P3 per unit (for quality improvement)Current Profits: P2.4 millionSales: 100,000 units. A. Assuming that average variable costs are constant at all output levels, findABC Corp.’s total cost function before the proposed change.B. Calculate the total cost function if the quality improvement is implemented.C. Calculate ABC Corp.’s break-even output before and after the change, assuming it cannot increase its price.D. Calculate the increase in sales that would be necessary with the quality improvement to increase profits to P2.7 million
The following data relate to Department no. 3 of Tsing Corporation: Segment contribution margin 540,000 Profit margin controllable by segment manager 310000 Segment profit margin 150000 On the basis of this information, Department no. 3's variable operating expenses are: Select one: a. $80,000. b. $160,000. c. $230,000. d. $390,000. e. not determinable.
Pepper’s Automotive (see Brief Exercise 18-19) has further analyzed the exhaust systemdivision into three products: exhaust pipes, intake valves, and intake pipes. The incomestatement is available below.If intake valves were dropped, what would be the change in profits in the short run and thelong run, respectively?[LO 18-4]Exhaust Pipes Intake Valves Intake PipesNet revenues $500,000 $300,000 $200,000Variable costs 50,000 150,000 100,000Contribution margin 450,000 150,000 100,000Controllable fixed costs 50,000 50,000 0Controllable margin 400,000 100,000 100,000Noncontrollable fixed costs 100,000 150,000 50,000Contribution by profit center $300,000 $ (50,000) $ 50,000a. Short run: $100,000 decrease; long run: $50,000 increaseb. Short run: $150,000 increase; long run: $50,000 decreasec. Short run: $100,000 increase; long run: $50,000 decreased. Short run: $50,000 increase; long run: $100,000 decrease

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