The sales, income from operations, and invested assets for each division of Grosbeak Company are as follows: Sales Income from Operations Invested Assets Division E $5,000,000 $550,000 $2,400,000 Division F 4,800,000 860,000 2,500,000 Division G 7,000,000 860,000 2,900,000 (a) Using the expanded expression, determine the profit margin, investment turnover, and rate of return on investment for each division. Round to one decimal place. (b) Which is (are) the most profitable per dollar invested?

The sales, income from operations, and invested assets for each division of Grosbeak Company are as follows: Sales Income from Operations Invested Assets Division E $5,000,000 $550,000 $2,400,000 Division F 4,800,000 860,000 2,500,000 Division G 7,000,000 860,000 2,900,000 (a) Using the expanded expression, determine the profit margin, investment turnover, and rate of return on investment for each division. Round to one decimal place. (b) Which is (are) the most profitable per dollar invested?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 14.3.1P

See similar textbooks

Similar questions

Profit center responsibility reporting On-Demand Sports Co. operates two divisions—the Action Sports Division and the Team Sports Division. The following income and expense accounts were provided as of November 30. 20Y1, the end of the current fiscal year, after all adjustments, including those for inventories, were recorded The bases to be used in allocating expenses, together with other essential information, are as follows a.Advertising expense—incurred al headquarters, charged back to divisions on the basis of usage: Action Sports Division. $1,200,000; Team Sports Division, $1,800,000. b. Transportation expense—charged hack lo divisions at a charge rale of $18.50 per bill of lading: Action Sports Division, 14.000 bills of lading; Team Sports Division. 21.400 bills of lading. C. Accounts receivable collection expense—incurred al headquarters, charged back to divisions at a charge rate of $9-00 per invoice: Action Sports Division. 32.000 sales invoices; Team Sports Division, 12.500 sales invoices. d. Warehouse expense—charged back to divisions on the basis of floor space used in storing division products: Action Sports Division. 120.000 square feet; Team Sports Division. 80.000 square feet. Prepare divisional income statements with two column headings: Action Sports Division and Team Sports Division. Provide supporting schedules for determining service department charges.
Corrections to service department charges Panda Airlines Inc. has two divisions organized as profit centers, the Passenger Division and the Cargo Division. The following divisional income statements were prepared The service department charge rate for the service department costs was based on revenues. The following additional information is available a.Does the operating income for the two divisions accurately measure performance? b.Using service charge rates for service department charges, correct the divisional income statements.
Service department charges In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of 64,560, and the Purchasing Department had expenses of 40,000 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: A. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. B. Using the cost driver information in (A), determine the annual amount of payroll and purchasing costs allocated to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services. C. Why does the Residential Division have a larger support department allocation than the other two divisions, even though its sales are lower?
Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z Sales $ 1,431,000 $ 942,000 $ 4,792,000 Operating Income 214,300 124,300 230,000 Investment in assets 557,200 596,600 2,587,500 The asset turnover (AT) for Division X is (rounded):
Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z Sales $ 1,350,000 $ 940,000 $ 4,869,000 Operating Income 139,100 98,800 225,300 Investment in assets 272,900 434,400 3,253,200 The asset turnover (AT) for Division Y is calculated to be (rounded):
The sales, income from operations, and invested assets for each division of Jackson Corporation are as follows: Sales Income from Operations Invested Assets Division E $4,000,000 $550,000 $2,400,000 Division F 4,800,000 760,000 2,500,000 Division G 7,000,000 860,000 2,800,000 (a) Using the expanded expression, determine the profit margin, investment turnover, and rate of return on investment for each division. Round answers to one decimal place. (b) Which Division is the most profitable per dollar invested? (a) (b)
An entity and its divisions reported the following for the current year: Sales to unaffiliated customers 40,000,000 Intersegment sales of product similar to those sold to unaffiliated customers 12,000,000 Interest earned on loans to other operating segments 1,000,000 The entity and all of its divisions are engaged solely in manufacturing operations. To qualify as reportable segment, the segment revenue should at least be what amount? A. 5,300,000 B. 4,100,000 C. 5,200,000 D. 4,000,000
The sales, income from operations, and invested assets for each division of Grosbeak Company are as follows: Sales Income fromOperations InvestedAssets Division E $5,000,000 $550,000 $2,400,000 Division F 4,800,000 860,000 2,500,000 Division G 7,000,000 860,000 2,900,000 a. Using the DuPont formula, determine the profit margin, investment turnover, and rate of return on investment for each division. Round profit margin to two decimal places, investment turnover to four decimal places and rate of return on investment to one decimal place. Division E Division F Division G Profit Margin % % % Investment Turnover Rate of return on investment % % % b. Which division is the most profitable per dollar invested?
The sales, income from operations, and invested assets for each division of Jackson Corporation are as follows: Sales Income from Operations Invested Assets Division E $4,100,000 $550,000 $2,400,000 Division F 4,700,000 760,000 2,500,000 Division G 7,200,000 860,000 2,800,000 (a) Using the Dupont ROI expanded expression, determine the profit margin, investment turnover, and rate of return on investment for each division. You must provide 3 answers for each division! Round all answers to two decimal places. (b) Which Division is the most profitable per dollar invested? (a) (b)
The following information was taken from the segmented income statement of Maniraguha plc, and the company's three divisions: Maniraguha, Incorporated eastern Division western Division central Division Revenues $ 1,120,000 $ 320,000 $ 355,000 $ 445,000 Variable operating expenses 626,000 176,000 195,000 255,000 Controllable fixed expenses 255,000 80,000 90,000 85,000 Noncontrollable fixed expenses 105,000 30,000 35,000 40,000 In addition, the company incurred common fixed costs of $22,500. Assume that the eastern division increases its promotion expense, a controllable fixed cost, by $23,500. As a result, revenues increased by $64,000. If variable expenses are tied directly to revenues, what is the new Eastern division segment profit margin?
Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z Sales $ 1,416,000 $ 831,000 $ 5,294,000 Operating Income 197,400 102,700 275,600 Investment in assets 380,600 498,600 3,618,400 The return on sales (ROS) for Division X is: (Round your percentages to one decimal place.)
Mesopotamian Materials Inc. (MMI) has two decentralized divisions (Ur and Babylon) that have decision making responsibility over the amount of resources invested in their divisions. Recent financial extracts for both divisions are presented below: Ur Babylon Fixed assets, gross $2,500 $4,000 Accumulated depreciation $1,500 $1,200 Other assets $500 $750 Liabilities $500 $1,000 Sales $6,750 $7,200 Net income after tax* $743 $1,008 Average age of fixed assets (years) 15 5 *Net income is after tax but before interest MMI's weighted average cost of capital (WACC) is 11.5%. The MMI measures division performance based on the book value of net assets. The producer price index 15 years ago was 100, 116 five years ago, and currently is 125. Which is true, when fixed asset costs are adjusted upward for inflation? Babylon's RONA is 35.8% Babylon's RONA is 26.3% Ur's depreciation expense increases by $19 more than…

SEE MORE QUESTIONS

Recommended textbooks for you

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

SEE MORE TEXTBOOKS

GET THE APP

About FAQ Academic Integrity Sitemap Document Sitemap

Contact Bartleby Contact Research (Essays)High School Textbooks Literature Guides Concept Explainers by Subject Essay Help Mobile App

GET THE APP

Privacy

Your CA Privacy Rights

Your NV Privacy Rights

About Ads

Manage My Data

bartleby, a Learneo, Inc. business

	Sales	Income from Operations	Invested Assets
Division E	$5,000,000	$550,000	$2,400,000
Division F	4,800,000	860,000	2,500,000
Division G	7,000,000	860,000	2,900,000

(a)	Using the expanded expression, determine the profit margin, investment turnover, and rate of return on investment for each division. Round to one decimal place.
(b)	Which is (are) the most profitable per dollar invested?