Both product line managers would like to improve their respective returns on investment, and each manager has a different idea about how to accomplish this. If the vinyl product line manager was able to reduce variable cost per unit by 8%, what would be the new operating income? (Round Operating income to 0 decimal places, eg. 12,500.) New operating income What would be the new return on investment? (Round ROI to 2 decimal places, eg. 5.12%) New ROI
Both product line managers would like to improve their respective returns on investment, and each manager has a different idea about how to accomplish this. If the vinyl product line manager was able to reduce variable cost per unit by 8%, what would be the new operating income? (Round Operating income to 0 decimal places, eg. 12,500.) New operating income What would be the new return on investment? (Round ROI to 2 decimal places, eg. 5.12%) New ROI
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 3TP: As a manager, you have to choose between two options for new production equipment. Machine A will...
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Ch 10
Cullumber produces and sells two products—aluminum and vinyl. Each of these products is made in a dedicated manufacturing facility, and the product line managers are evaluated based on the product line’s return on investment. The following data is from the most recent year of operations.
Aluminum
|
Vinyl
|
||||
---|---|---|---|---|---|
Sales
|
$4,800,000 | $4,200,000 | |||
Variable costs
|
2,304,000 | 2,355,000 | |||
Direct fixed costs
|
1,728,000 | 1,530,000 | |||
Average assets
|
3,200,000 | 1,500,000 |
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