Referring to the spreadsheet graphic provided below; the optimal formula is terms of flexibility to calculate the projected sales result in cell C2 would be:
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- Refer to Cornerstone Exercise 3.4 for data on Dohini Manufacturing Companys purchasing cost and number of purchase orders. The controller for Dohini Manufacturing ran regression on the data, and the coefficients shown by the regression program are: Required: 1. Construct the cost formula for the purchasing activity showing the fixed cost and the variable rate. 2. If Dohini Manufacturing Company estimates that next month will have 430 purchase orders, what is the total estimated purchasing cost for that month? (Round your answer to the nearest dollar.) 3. What if Dohini Manufacturing wants to estimate purchasing cost for the coming year and expects 5,340 purchase orders? What will estimated total purchasing cost be? (Round your answer to the nearest dollar.) What is the total fixed purchasing cost? Why doesnt it equal the fixed cost calculated in Requirement 1?Using Goal Seek/Solver and/or What-If Scenarios based on the below income statement, calculate the following a) the sales amount in order to realize $1,200,000 of net income without changing any of the expense accounts. b) to realize $1,200,000 without changing revenues and cost of goods sold. c) What could be the best scenario to achieve NI $1,200,000.Please answer last 3 subparts labeled d, e, f. D. What would be the effect on the ROI of the Tufting Division using your transfer price? Explain. E. Assume that the Backing Division is now selling 2,000,000 square yards per year to retail outlets. What transfer price would you recommend? What will be the effect on corporate profits? F. If the Backing Division is at capacity and decides to sell to the Tufting Division for $3.00 per square yard, what will be the effect on the company's profits?
- 4. Which segment has the best margin?a. Segment Ab. Segment Bc. Segment Cd. Segment A and C 5. Which segment has the best sales turnover?a. Segment Ab. Segment Bc. Segment Cd. Segment A and B 6. Which segment has the best ROI?a. Segment Ab. Segment Bc. Segment Cd. Segment A and C 7. What is the ROI for segment A? Enter your number with four decimal points. For example, 5.23% enter as 0.0523:Refer to Cornerstone Exercise 3.4 for data on Dohini Manufacturing Company’s purchasing cost and number of purchase orders.The controller for Dohini Manufacturing ran regression on the data, and the coefficients shown by the regression program are: Intercept 15,021 (rounded to the nearest dollar)X variable 1 9.74 (rounded to the nearest cent) Required: 1. Construct the cost formula for the purchasing activity showing the fixed cost and the vari-able rate. 2. If Dohini Manufacturing Company estimates that next month will have 430 purchaseorders, what is the total estimated purchasing cost for that month? (Round your answer tothe nearest dollar.)3. What if Dohini Manufacturing wants to estimate purchasing cost for the coming year andexpects 5,340 purchase orders? What will estimated total purchasing cost be? (Round youranswer to the nearest dollar.) What is the total fixed purchasing cost? Why doesn’t it equalthe fixed cost calculated in Requirement 1?Marketing: Determine the marketing return on sales (marketing ROS) and return on marketing investment (marketing ROI) for Company A and Company B in the chart below. Which company is performing better? Company A Company BNet sales 1,240,000 980,000Cost of goods sold 568,000 430,000Sales expenses 400,000 70,000 Fill in the table below. (Round the NMC to the nearest dollar and all other values to the nearest whole number.) Company A Company B NMC $ $
- Case 1: ROI You are comparing the performance of two (2) separate divisions, segments A and B, using ROI Analysis. A B Sales P100,000.00 P500,000.00 Operating Expenses 30,000.00 300,000.00 Net Operating income 70,000.00 200,000.00 Average Operating Assets 10,000.00 40,000.00 Required: Using ROI Analysis, which segment is performing better? To answer this question, you need to: Compute the ROI of each segment and Compute the components of ROI of each segmentD.Insert a column called percentage contribution in an appropriate area of the spreadsheet, to display the total contribution to overall sales by each salesperson. The answer is to be formatted as percentage. e.Company policy dictates that all sales volumes exceeding nine million ($8,000, 000.00) but not exceeding ten million ($10, 000, 000.00) should receive an incentive of US $700.00, otherwise they should receive US $200.00. In an appropriate area of the spreadsheet create a heading called Special Incentive 1 and make the necessary calculations using the necessary function f.Company policy also dictates that all sales volumes exceeding ten million ($10,000, 000.00) but less than or equal to twelve million ($12, 000, 000.00) should receive a trip to any Air Jamaica destination, otherwise they should not receive a trip. In an appropriate area of the spreadsheet create a heading called Special Incentive 2 and make the necessary calculations using the necessary functionUsing ROI and RI to evaluate investment centers Consider the following condensed financial statements of Forever Free, Inc. The Company’s target fate of return is 40% Requirements Calculate the company’s ROI. Round all of your answers to four decimal places. Calculate the company’s profit margin ratio. Interpret your results. Calculate the company’s asset turnover ratio. Interpret your results. Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results. Calculate the company’s RI. Interpret your results.
- Smiths enterprises deals with Sweden based telephone instruments selling phones internationally. Demand (Y) for phones is expressed as a function of Price (x). The demand for the phones in the market would depend on the price. The organization conducts its forecast based on least squares method. The least squares regression line is y = 8 – 9x. If the value of x = 5, the value of ‘y’ is: a. - 37 b. 45 c. - 45 d. 37Chart included in screenshot as well as prior analysis** CVP analysis is used to analyze the effects of changes in selling prices, costs and volume on profits. It is also used to determine target profit, the margin of safety, operating leverage, product mix and choosing among marketing strategies and others. Suppose Byron management has a target operating income of $3,000. Assume the same costs as above and the sell price remains at $24 per unit. 1. How many units does Byron need to sell to meet this goal? _______ units 2. What is Byron's margin of safety in sales and in units when Byron sells 730 units? Margin of safety in sales $_________ Margin of safety in units ________ units 3. What is the degree of operating leverage when 730 units are sold? If required, round your answer to two decimal places. ___________A segment has the following data: Sales $760000 Variable expenses 330000 Fixed expenses 550000 What will be the incremental effect on net income if this segment is eliminated, assuming the fixed expenses will be allocated to profitable segments? $430000 decrease $330000 increase Cannot be determined from the data provided $5500 decrease
