ROI, measurement alternatives for performance measures Appleton's owns and operates a variety of casual dining restaurants in three cities: St. Louis, Memphis, and New Orleans. Each geo- graphic market is considered a separate division. The St. Louis division includes four restaurants, each built in early 2007. The Memphis division consists of three restaurants, each built in January 2011. The New Orleans division is the newest, consisting of three restaurants built 4 years ago. Division managers at Appleton's are evaluated on the basis of ROI. The following information refers to the three divisions at the end of 2017: Home Insert Page Layout Formulas Data Review View в St. Louis $17,336,000 $12,050,000 $10,890,000 $40,276,000 D Memphis New Orleans Total 2 Division revenues 3 Division expenses 4 Division operating income 5 Gross book value of long-term assets 6 Accumulated depreciation 7 Current assets 8 Depreciation expense 9 Construction cost index for year of construction 15,890,000 11,042,000 9,958,000 36,890,000 1,446,000 1,008,000 932,000 3,386,000 24,600,000 9,000,000 7,500,000 3,500,000 8,100,000 12,260,000 6,600,000 1,999,600 2,160,000 1,536,400 1,649,200 5,185,200 600,000 500,000 540,000 1,640,000 100 110 118
ROI, measurement alternatives for performance measures Appleton's owns and operates a variety of casual dining restaurants in three cities: St. Louis, Memphis, and New Orleans. Each geo- graphic market is considered a separate division. The St. Louis division includes four restaurants, each built in early 2007. The Memphis division consists of three restaurants, each built in January 2011. The New Orleans division is the newest, consisting of three restaurants built 4 years ago. Division managers at Appleton's are evaluated on the basis of ROI. The following information refers to the three divisions at the end of 2017: Home Insert Page Layout Formulas Data Review View в St. Louis $17,336,000 $12,050,000 $10,890,000 $40,276,000 D Memphis New Orleans Total 2 Division revenues 3 Division expenses 4 Division operating income 5 Gross book value of long-term assets 6 Accumulated depreciation 7 Current assets 8 Depreciation expense 9 Construction cost index for year of construction 15,890,000 11,042,000 9,958,000 36,890,000 1,446,000 1,008,000 932,000 3,386,000 24,600,000 9,000,000 7,500,000 3,500,000 8,100,000 12,260,000 6,600,000 1,999,600 2,160,000 1,536,400 1,649,200 5,185,200 600,000 500,000 540,000 1,640,000 100 110 118
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter8: Tactical Decision-making And Relevant Analysis
Section: Chapter Questions
Problem 56P: Segmented Income Statement, Management Decision Making FunTime Company produces three lines of...
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