ACCOUNTING PRCINCIPLES (CCCS CUSTOM)
14th Edition
ISBN: 9781119845102
Author: Weygandt
Publisher: WILEY
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Chapter 25, Problem 4DIE
a.
To determine
Introduction:
To calculate: Controllable margin and Return on Investments for 2020.
2.
To determine
Introduction: Return on Investment represents the formula used by the management in determining the profitability percentage generated by the activity in which a particular amount of investment is made. It is computed by dividing the controllable margin by the average operating assets.
To calculate: Controllable margin and expected Return on Investments (ROI) for 2021
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The South Division of Wiig Company reported the following data for the current year.
Sales
Variable costs
Controllable fixed costs
Average operating assets
$2,950,000
1,947,000
2.
595,000
Top management is unhappy with the investment center's return on investment (ROI). It asks the manager of the South Division to submit plans to improve ROI in the next year. The manager
believes it is feasible to consider the following independent courses of action.
3.
5,000,000
1. Increase sales by $300,000 with no change in the contribution margin percentage.
Reduce variable costs by $155,000.
Reduce average operating assets by 4%.
(a) Compute the return on investment (ROI) for the current year. (Round ROI to 2 decimal places, e.g. 1.57%)
Top management is unhappy with the investment center's return on investment (ROD) It asks the manager of the South Division to
submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of
action
1
2
3
(a) Compute the return on investment (ROI) for the current year. (Round ROI to 2 decimal places, e.g. 1.57%)
Increase sales by $300,000 with no change in the contribution margin percentage.
Reduce variable costs by $160,000
Reduce average operating assets by 3%
Return on Investment
Action 1
(b) Using the ROI formula, compute the ROI under each of the proposed courses of action. (Round ROI to 2 decimal places, eg.
1.57%)
Action 21
Action 31
Save for Later
%
Return on investment
Attempts: 0 of 1 used Submit Answer
P
The Atlantic Division of Oriole Productions Company reported the following results for 2022:
Sales
Variable costs
Controllable fixed costs
Average operating assets
Management is considering the following independent alternative courses of action in 2023 in order to maximize the return on
investment for the division.
1.
2.
3.
(a)
$4,032,000
3,213,504
314,000
2,514,000
Reduce controllable fixed costs by 10% with no change in sales or variable costs..
Reduce average operating assets by 10% with no change in controllable margin.
Increase sales $500,000 with no change in the contribution margin percentage.
Compute the return on investment for 2022. (Round answer to 1 decimal place, e.g. 52.5.)
Return on Investment
Save for Later
%
Attempts: 0 of 1 used
(b)
The parts of this question must be completed in order. This part will be available when you complete the part above.
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Chapter 25 Solutions
ACCOUNTING PRCINCIPLES (CCCS CUSTOM)
Ch. 25 - Prob. 1QCh. 25 - Prob. 2QCh. 25 - Prob. 3QCh. 25 - 4. Ken Bay questions the usefulness of a master...Ch. 25 - Prob. 5QCh. 25 - Prob. 6QCh. 25 - Prob. 7QCh. 25 - Prob. 8QCh. 25 - Prob. 9QCh. 25 - Prob. 10Q
Ch. 25 - Prob. 11QCh. 25 - Prob. 12QCh. 25 - Prob. 13QCh. 25 - Prob. 14QCh. 25 - Prob. 15QCh. 25 - Prob. 16QCh. 25 - Prob. 17QCh. 25 - Prob. 18QCh. 25 - Prob. 19QCh. 25 - Prob. 20QCh. 25 - Prob. 21QCh. 25 - Prob. 22QCh. 25 - Prob. 23QCh. 25 - Prob. 24QCh. 25 - Prob. 25QCh. 25 - Prob. 26QCh. 25 - Prob. 1BECh. 25 - Prob. 2BECh. 25 - Prob. 3BECh. 25 - Prob. 4BECh. 25 - Prob. 5BECh. 25 - Prob. 6BECh. 25 - (LO 3) Torres Company accumulates the following...Ch. 25 - Prob. 8BECh. 25 - Prob. 9BECh. 25 - Prob. 10BECh. 25 - Prob. 11BECh. 25 - Prob. 12BECh. 25 - Prob. 1DIECh. 25 - Prob. 2DIECh. 25 - Prob. 3DIECh. 25 - Prob. 4DIECh. 25 - Prob. 1ECh. 25 - E24-2 Crede Company budgeted selling expenses of...Ch. 25 - Prob. 3ECh. 25 - Prob. 4ECh. 25 - Prob. 5ECh. 25 - Prob. 6ECh. 25 - Prob. 7ECh. 25 - Prob. 8ECh. 25 - Prob. 9ECh. 25 - Prob. 10ECh. 25 - Prob. 11ECh. 25 - Prob. 12ECh. 25 - Prob. 13ECh. 25 - Prob. 14ECh. 25 - Prob. 15ECh. 25 - Prob. 16ECh. 25 - Prob. 17ECh. 25 - Prob. 18ECh. 25 - Prob. 19ECh. 25 - Prob. 20ECh. 25 - Prob. 21ECh. 25 - Prob. 1PSACh. 25 - (LO 2) Zelmer Company manufactures tablecloths....Ch. 25 - Prob. 3PSACh. 25 - Prob. 4PSACh. 25 - Prob. 5PSACh. 25 - Prob. 6PSACh. 25 - Prob. 7PSACh. 25 - Service Green Pastures is a 400-acre farm on the...Ch. 25 - Prob. 2EYCTCh. 25 - Prob. 3EYCTCh. 25 - Prob. 4EYCTCh. 25 - Prob. 5EYCTCh. 25 - Prob. 7EYCT
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