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Do It! Review 10-4 The service division of Raney Industries reported the following results for 2020. Sales Variable costs Controllable fixed costs Average operating assets $477,000 286,200 65,400 627,000 Management is considering the following independent courses of action in 2021 in order to maximize the return on investment for this division. 1. Reduce average operating assets by $104,500, with no change in controllable margin. 2. Increase sales $97,185, with no change in the contribution margin percentage. Compute the controllable margin...
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The service division of Raney Industries reported the following results for 2020. Sales Variable costs Controllable fixed costs Average operating assets $535,000 321,000 101,140 594,000 Management is considering the following independent courses of action in 2021 in order to maximize the return on investment for this division. 1. Reduce average operating assets by $176,000, with no change in controllable margin. 2. Increase sales $127,710, with no change in the contribution margin percentage. Compute the controllable margin and the return on...
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The service division of Raney Industries reported the following results for 2020. Sales $478,000 Variable costs 286,800 Controllable fixed costs 62,400 644,000 Average operating assets Management is considering the following independent courses of action in 2021 in order to maximize the return on investment for this division. 1. Reduce average operating assets by $128,800, with no change in controllable margin 2. Increase sales $109,480, with no change in the contribution margin percentage Compute the controllable margin and the return on...
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- Your answer is partially correct. The South Division of Wiig Company reported the following data for the current year. Sales Variable costs Controllable fixed costs Average operating assets $2,955,000 1,973,940 602,200 5,041,000 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. 1 Increase sales...
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x Your answer is incorrect. Try again. The South Division of Bramble Company reported the following data for the current year. Sales Variable costs Controllable fixed costs Average operating assets $3,050,000 2,013,000 610,000 5,000,000 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. 1. Increase...
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Exercise 22-17 The South Division of Wiig Company reported the following data for the current year. Sales $3,079,000 Variable costs 2,032,140 Controllable fixed costs 590,600 Average operating assets 5,009,800 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 1. Increase sales by $321,000 with no...
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Exercise 22-17
The South Division of Wiig Company reported the following data
for the current year.
Exercise 22-17 The South Division of Wiig Company reported the following data for the current year. Sales Variable costs Controllable fixed costs Average operating assets $2,911,000 1,921,260 602,400 5,055,400 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...
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Exercise 10-07 a1-b2
Concord Company purchased a delivery truck for $29,000 on
January 1, 2020. The truck has an expected salvage value of $1,000,
and is expected to be driven 100,000 miles over its estimated
useful life of 10 years. Actual miles driven were 12,300 in 2020
and 13,200 in 2021.
Your answer is correct.
Calculate depreciation expense per mile under units-of-activity
method. (Round answer to 2 decimal places, e.g.
0.50.)
Depreciation expense
$
per mile
SHOW LIST OF ACCOUNTS...
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Brief Exercise 10-10 For its three investment centers, Gerrard Company accumulates the following data: І II Sales Controllable margin Average operating assets $1,920,000 1,344,000 4,903,000 $4,013,000 2,006,500 8,021,000 III $4,033,000 3,629,700 12,010,000 The centers expect the following changes in the next year: (I) increase sales 14%; (II) decrease costs $404,000; (III) decrease average operating assets $534,000. Compute the expected return on investment (ROI) for each center. Assume center I has a controllable margin percentage of 70%. (Round ROI to 1...
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Exercise 10-17 (Video) 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 1,947,000 605,000 5,000,000 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 1. Increase sales by $300,000 with...
Do It! Review 10-4 The service division of Raney Industries reported the following results for 2020. Sales Variable costs Controllable fixed costs Average operating assets $477,000 286,200 65,400 627,000 Management is considering the following independent courses of action in 2021 in order to maximize the return on investment for this division. 1. Reduce average operating assets by $104,500, with no change in controllable margin. 2. Increase sales $97,185, with no change in the contribution margin percentage. Compute the controllable margin...
The service division of Raney Industries reported the following results for 2020. Sales Variable costs Controllable fixed costs Average operating assets $535,000 321,000 101,140 594,000 Management is considering the following independent courses of action in 2021 in order to maximize the return on investment for this division. 1. Reduce average operating assets by $176,000, with no change in controllable margin. 2. Increase sales $127,710, with no change in the contribution margin percentage. Compute the controllable margin and the return on...
The service division of Raney Industries reported the following results for 2020. Sales $478,000 Variable costs 286,800 Controllable fixed costs 62,400 644,000 Average operating assets Management is considering the following independent courses of action in 2021 in order to maximize the return on investment for this division. 1. Reduce average operating assets by $128,800, with no change in controllable margin 2. Increase sales $109,480, with no change in the contribution margin percentage Compute the controllable margin and the return on...
- Your answer is partially correct. The South Division of Wiig Company reported the following data for the current year. Sales Variable costs Controllable fixed costs Average operating assets $2,955,000 1,973,940 602,200 5,041,000 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. 1 Increase sales...
x Your answer is incorrect. Try again. The South Division of Bramble Company reported the following data for the current year. Sales Variable costs Controllable fixed costs Average operating assets $3,050,000 2,013,000 610,000 5,000,000 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. 1. Increase...
Exercise 22-17 The South Division of Wiig Company reported the following data for the current year. Sales $3,079,000 Variable costs 2,032,140 Controllable fixed costs 590,600 Average operating assets 5,009,800 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 1. Increase sales by $321,000 with no...
Exercise 22-17
The South Division of Wiig Company reported the following data
for the current year.
Exercise 22-17 The South Division of Wiig Company reported the following data for the current year. Sales Variable costs Controllable fixed costs Average operating assets $2,911,000 1,921,260 602,400 5,055,400 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...
Exercise 10-07 a1-b2
Concord Company purchased a delivery truck for $29,000 on
January 1, 2020. The truck has an expected salvage value of $1,000,
and is expected to be driven 100,000 miles over its estimated
useful life of 10 years. Actual miles driven were 12,300 in 2020
and 13,200 in 2021.
Your answer is correct.
Calculate depreciation expense per mile under units-of-activity
method. (Round answer to 2 decimal places, e.g.
0.50.)
Depreciation expense
$
per mile
SHOW LIST OF ACCOUNTS...
Brief Exercise 10-10 For its three investment centers, Gerrard Company accumulates the following data: І II Sales Controllable margin Average operating assets $1,920,000 1,344,000 4,903,000 $4,013,000 2,006,500 8,021,000 III $4,033,000 3,629,700 12,010,000 The centers expect the following changes in the next year: (I) increase sales 14%; (II) decrease costs $404,000; (III) decrease average operating assets $534,000. Compute the expected return on investment (ROI) for each center. Assume center I has a controllable margin percentage of 70%. (Round ROI to 1...
Exercise 10-17 (Video) 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 1,947,000 605,000 5,000,000 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 1. Increase sales by $300,000 with...