MANAGERIAL ACCTING LL W/CNCT- UND CUSTOM
17th Edition
ISBN: 9781264343850
Author: Garrison
Publisher: MCG CUSTOM
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Question
Chapter 11, Problem 11E
1
To determine
Concept introduction:
The Return on Investment is also called ROI. The return means the profit you make as a result of your investments. Return on Investment is a performance measure used to evaluate the profitability or efficiency of an investments or compare the efficiency of a number of investments. ROI is generally defined as the ratio of net profit over the total cost of the investment. ROI is calculated by dividing the net income by the total cost of the investment.
The table showing the relation between sales and return on investment
2
To determine
Concept introduction:
Return on investment:
The Return on Investment is also called ROI. The return means the profit you make as a result of your investments. Return on Investment is a performance measure used to evaluate the profitability or efficiency of an investments or compare the efficiency of a number of investments. ROI is generally defined as the ratio of net profit over the total cost of the investment. ROI is calculated by dividing the net income by the total cost of the investment.
What happened to the company’s return on investment as sales increase
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Question No. 3 CVP – Applied: Revising Sales IncentivesData concerning Wislocki Corporation's single product appear below:
Per Unit Percent of SalesSelling price$ 180 100 %Variable expenses45 25 %Contribution margin$ 135 75 %
Fixed expenses are $1,048,000 per month. The company is currently selling 9400 units per month.The marketing manager would like to introduce sales commissions as an incentive for the sales staff. Themarketing manager has proposed a commission of $12 per unit. In exchange, the sales staff would acceptan overall decrease in their salaries of $106,000 per month. The marketing manager predicts thatintroducing this sales incentive would increase monthly sales by 440 units.
Required:What should be the overall effect on the company's monthly net operating income of this change?
PROBLEM 7
Tito Company sells several products.
Information of average revenue and costs
are as follows:
Selling price per unitPhp20.00
Variable costs per unit:
Direct materialsPhp4.00
Direct manufacturing labor
Php1.60
Manufacturing overhead
Php0.40
Selling costsPhp2.00
Annual fixed costs
Php96,000
26. Calculate the contribution margin per
unit.
27. Calculate the number of units Tito's
must sell each year to break even.
28. Determine the breakeven point in
peso.
29. Calculate the number of units Tito's
must sell to yield a profit of Php144,000.
PROBLEM
Basic CVP Concepts
Katayama Company produces a variety of products. One division makes neoprene wetsuits. The division’s projected income statement for the coming year is as follows:
Sales (65,000 units)
$15,600,000
Less: Variable expenses
8,736,000
Contribution margin
$6,864,000
Less: Fixed expenses
4,012,000
Operating income
$2,852,000
Required:
1. Compute the contribution margin per unit, and calculate the break-even point in units. Round unit contribution margin to the nearest cent and break-even point to the nearest whole unit.
Unit contribution margin
$
Break-even point
units
Compute the contribution margin ratio and the break-even point in dollars. Enter the contribution margin ratio as a decimal value rounded to two decimal places, and use this rounded value in the second calculation.
Contribution margin ratio
Break-even point (rounded to the nearest dollar)
$
2. The divisional manager has decided to increase the advertising…
Chapter 11 Solutions
MANAGERIAL ACCTING LL W/CNCT- UND CUSTOM
Ch. 11 - Prob. 1QCh. 11 - Prob. 2QCh. 11 - Prob. 3QCh. 11 - Prob. 4QCh. 11 - Prob. 5QCh. 11 - Prob. 6QCh. 11 - Prob. 7QCh. 11 - Prob. 8QCh. 11 - Prob. 9QCh. 11 - Prob. 10Q
Ch. 11 - Prob. 1AECh. 11 - Prob. 2AECh. 11 - Prob. 1F15Ch. 11 - Prob. 2F15Ch. 11 - Prob. 3F15Ch. 11 - Prob. 4F15Ch. 11 - Prob. 5F15Ch. 11 - Prob. 6F15Ch. 11 - Prob. 7F15Ch. 11 - Prob. 8F15Ch. 11 - Prob. 9F15Ch. 11 - Prob. 10F15Ch. 11 - Prob. 11F15Ch. 11 - (
$1,000,000
300,000
700,000
500.000
$
200,000
...Ch. 11 - Prob. 13F15Ch. 11 - Prob. 14F15Ch. 11 - Prob. 15F15Ch. 11 - Prob. 1ECh. 11 - Prob. 2ECh. 11 - Prob. 3ECh. 11 - Prob. 4ECh. 11 - Prob. 5ECh. 11 - Prob. 6ECh. 11 - Prob. 7ECh. 11 - Prob. 8ECh. 11 -
EXERCISE 11-9 Return on Investment (ROI) and...Ch. 11 - Prob. 10ECh. 11 - Prob. 11ECh. 11 - Prob. 12ECh. 11 - Prob. 13ECh. 11 - Prob. 14ECh. 11 - Prob. 15ECh. 11 - Prob. 16ECh. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prob. 19PCh. 11 - Prob. 20PCh. 11 - Prob. 21PCh. 11 - Prob. 22PCh. 11 - Prob. 23PCh. 11 - Prob. 24PCh. 11 - Prob. 25PCh. 11 - Prob. 26C
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