MANAGERIAL ACCOUNTING FUND. W/CONNECT
5th Edition
ISBN: 9781259688713
Author: Wild
Publisher: MCG
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Chapter 9, Problem 9QS
Compute
| Investment center | Net income | Average assets | Return on investment |
| Cameras and camcorders………. | $ 4,500,000 | $20,000,000 | ----------------- |
| Phones and communications…. | 1,500,000 | 12,500,000 | ----------------- |
| Computers and accessories….. | 800,000 | 10,000,000 | ----------------- |
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The following information is provided for each Investment Center.
Investment Center
Cameras
Phones
Computers
Income
$5,200,000
2,436,000
1,000,000
Average Assets
$ 29,000,000
20,300,000
19,800,000
QS 22-12 (Algo) Computing return on investment LO A1
Compute return on investment for each investment center. Which center performed the best based on return on investment?
Complete this question by entering your answers in the tabs below.
Return on
Performance
Investment Based on ROI
Compute return on investment for each investment center.
Note: Round your final answer to 1 decimal place.
Investment Center
Income
Average Assets
Return on
Investment
Cameras
$ 5,200,000 $ 29,000,000
%
Phones
Computers
2,436,000
1,000,000
20,300,000
%
19,800,000
%
Investment Center
Sales.
Net income
Average invested assets
Profit margin
Investment turnover
Return on investment
Profit Margin:
Investment
Center
A
B
Investment Turnover:
Investment
Center
A
B
Choose Numerator:
Investment
Center
Use the information in the table above to compute each department's contribution to overhead (both in dollars and as a percent).
(Round your final answers to 2 decimal places.)
Return on investment:
A
B
Choose Numerator:
Choose Numerator:
1
A
1
$
$ 584,600
$1,580,000
?
1
10%
?
?%
B
$12,200,000
$
$
1 Choose Denominator:
Choose Denominator:
1 Choose Denominator:
?
?
?%
1.3
13%
=
Profit Margin
Profit margin
10.00 %
%
= Investment Turnover
= Investment turnover
1.30
Return on
investment
= Return on investment
%
13.00 %
!
Required information
[The following information applies to the questions displayed below.]
The following information is provided for each Investment Center.
Investment Center
Cameras
Phones
Computers
Compute return on investment for each investment center. Which center performed the best based on return on investment?
Performance
Return on
Investment Based on ROI
Income
$ 6,000,000
2,295,000
1,050,000
Complete this question by entering your answers in the tabs below.
Investment Center
Average Assets
$ 26,900,000
15,300,000
13,600,000
Compute return on investment for each investment center.
Note: Round your final answer to 1 decimal place.
Cameras
Phones
Computers
Income Average Assets
$ 6,000,000 $ 26,900,000
2,295,000
15,300,000
1,050,000
13,600,000
Chapter 9 Solutions
MANAGERIAL ACCOUNTING FUND. W/CONNECT
Ch. 9 - Prob. 1MCQCh. 9 - Prob. 2MCQCh. 9 - Prob. 3MCQCh. 9 - Prob. 4MCQCh. 9 - 5. Using the data in question 4, Department X’s...Ch. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 5DQ
Ch. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 9DQCh. 9 - Prob. 10DQCh. 9 - Prob. 11DQCh. 9 - Prob. 12DQCh. 9 - Prob. 13DQCh. 9 - Prob. 14DQCh. 9 - Prob. 15DQCh. 9 - Prob. 16DQCh. 9 - Prob. 17DQCh. 9 - Prob. 18DQCh. 9 - Prob. 19DQCh. 9 - Prob. 20DQCh. 9 - Prob. 1QSCh. 9 - Prob. 2QSCh. 9 - Prob. 3QSCh. 9 - In each blank next to the following terms, place...Ch. 9 - Prob. 5QSCh. 9 - In each blank to the following terms, place the...Ch. 9 - Car Mart pays $130,000 rent ecah year for its...Ch. 9 - Prob. 8QSCh. 9 - Compute return on investment for each of the...Ch. 9 - Computing residual income A1 Refer to the...Ch. 9 - Prob. 11QSCh. 9 - Computing profit margin and investment turnover A2...Ch. 9 - Classify each the performance measures below into...Ch. 9 - Prob. 14QSCh. 9 - Prob. 15QSCh. 9 - Prob. 16QSCh. 9 - Prob. 17QSCh. 9 - Prob. 18QSCh. 9 - Prob. 19QSCh. 9 - Prob. 1ECh. 9 - Prob. 2ECh. 9 - Prob. 3ECh. 9 - Prob. 4ECh. 9 - Prob. 5ECh. 9 - Prob. 6ECh. 9 - Jansen Company reports the following for its ski...Ch. 9 - Prob. 8ECh. 9 - Prob. 9ECh. 9 - Prob. 10ECh. 9 - Prob. 11ECh. 9 - Prob. 12ECh. 9 - Prob. 13ECh. 9 - Prob. 14ECh. 9 - Exercise 22-16 Performance measures-balanced...Ch. 9 - Oakwood Company produces maple bookcases to...Ch. 9 - Best Ink produces ink-jet printers for personal...Ch. 9 - The trailer division of Baxter Bicycles makes bike...Ch. 9 - Prob. 19ECh. 9 - Prob. 20ECh. 9 - Prob. 21ECh. 9 - Prob. 1PSACh. 9 - National Bank has several departments that occupy...Ch. 9 - Prob. 3PSACh. 9 - Prob. 4PSACh. 9 - Prob. 5PSACh. 9 - Prob. 1PSBCh. 9 - Harmons has several departments that occupy all...Ch. 9 - Prob. 3PSBCh. 9 - Sadar Company operates a store with two...Ch. 9 - Prob. 5PSBCh. 9 - Santana Reys two departments, computer consulting...Ch. 9 - Prob. 1BTNCh. 9 - Prob. 2BTNCh. 9 - Prob. 3BTNCh. 9 - Prob. 4BTNCh. 9 - Prob. 5BTNCh. 9 - Prob. 6BTNCh. 9 - Brian Lintons company, United By Blue, sells...Ch. 9 - Prob. 8BTNCh. 9 - Prob. 9BTN
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- Saved Compute return on investment for each of the divisions below (each is an investment center). Which division performed the best, based on return on investment? Complete this question by entering your answers in the tabs below. Performance Based on ROI Return on Investment Compute return on investment for each of the divisions below (each is an investment center). (Round your final answers to 1 decimal place.) Average Assets Return on Investment Investment Center Net Income Cameras and camcorders 2$ 6,118,000 $ 26,600,000 Phones and communications 3,628,500 17,700,000 % Computers and accessories 2,106,000 10,800,000 K Returm on Investment Performance Based on ROI >arrow_forwardRequired information. [The following information applies to the questions displayed below) The following information is provided for each Investment Center. Investment Center Cameras Phones Computers Income $ 4,500,000 1,500,000 800,000 Average Assets $ 20,000,000 12,500,000 10,000,000 Compute return on investment for each investment center. Which center performed the best based on return on investment? Complete this question by entering your answers in the tabs below. Return on Performance Investment Based on ROI Compute return on investment for each investment center. Note: Round your final answer to 1 decimal place. Investment Center Cameras Phones Computers Income $ 4,500,000 $ 1,500,000 800.000 Average Assets 20,000,000 12,500,000 Return on Investment % % 10,000,000 %arrow_forwardRequired information [The following information applies to the questions displayed below.] Megamart provides the following information on its two investment centers. Investment Center Electronics Income $ 3,114,000 2,261,000 Average Assets $ 17,300,000 13,300,000 Sporting goods Sales $ 41,520,000 18,088,000 1. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? 2. Assume a target income of 11% of average assets. Compute residual income for each center. Which center generated the most residual income? 3. Assume the Electronics center is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? The target return is 11%. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute return on investment for each center. Using return on investment, which center is most efficient…arrow_forward
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