Compute the operating income. $ 2. Compute the margin (as a percent) and turnover ratio. If required, round your answers to one decimal place. Margin % Turnover 3. Compute the ROI as a percent. Use the part 2 final answers in these calculations and round the final answer to two decimal places.
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Margin, Turnover, Return on Investment
Pelak Company had sales of $5,003,000, expenses of $4,607,000, and average operating assets of $4,840,000.
Required:
1. Compute the operating income.
$
2. Compute the margin (as a percent) and turnover ratio. If required, round your answers to one decimal place.
| Margin | % |
| Turnover |
3. Compute the ROI as a percent. Use the part 2 final answers in these calculations and round the final answer to two decimal places.
%
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