GenoPearls Company, a division of PUSHING THE LIMITS Corporation, has sales of P12,000,000 and variable costs and expenses amounting to P8,000,000. The average assets utilized in the operations also amount to P8,000,000 with a 12% cost of capital. Direct fixed costs and expenses amounts to P1,000,000. In measuring the performance of GenoPearls Company, return on investment and residual income are then by what amounts? (Sample format of the answer: 12.34%; P1,234,567)
GenoPearls Company, a division of PUSHING THE LIMITS Corporation, has sales of P12,000,000 and variable costs and expenses amounting to P8,000,000. The average assets utilized in the operations also amount to P8,000,000 with a 12% cost of capital. Direct fixed costs and expenses amounts to P1,000,000. In measuring the performance of GenoPearls Company, return on investment and residual income are then by what amounts? (Sample format of the answer: 12.34%; P1,234,567)
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 14EB: Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are...
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GenoPearls Company, a division of PUSHING THE LIMITS Corporation, has sales of P12,000,000 and variable costs and expenses amounting to P8,000,000. The average assets utilized in the operations also amount to P8,000,000 with a 12% cost of capital. Direct fixed costs and expenses amounts to P1,000,000. In measuring the performance of GenoPearls Company, return on investment and residual income are then by what amounts? (Sample format of the answer: 12.34%; P1,234,567)
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