Homework Answers
Controllable margin = Contribution margin - Controllable fixed cost
= 200,000 - 120,000
= 80,000
Roi = Controllable margin/Average operating assets
= 80,000/400,000
= 20%
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Question 23 (2 points) The Slow Division of Turtle Corporation has the following annual data. Sales...
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The South Division of Sheridan Company reported the following data for the current year. Sales $3,050,000 Variable...
The South Division of Sheridan Company reported the following
data for the current year.
Sales
$3,050,000
Variable costs
2,013,000
Controllable fixed costs
600,000
Average operating assets
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 no change in...
The South Division of Wiig Company reported the following data for the current year. Sales $2,950,000...
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Question 3 1 pts Advantages of a flexible budget include all of these, EXCEPT: it is...
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Please understand that an incorrect answer from you will trigger negative feedback and a downvote from me. The Cheap Di...
Please understand that an incorrect answer from you will trigger
negative feedback and a downvote from me.
The Cheap Division of TopTime Corporation has the following annual data. Sales - $700,000 Contribution margin $130,000 Controllable fixed costs $50,000 Average total operating assets $2,000,000 How much is the ROI for the year? 4% 6.5% 28.5% 35%
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Exercise 23-17 The South Division of Wiig Company reported the following data for the current year. Sales Variable costs Controllable fixed costs Average operating assets $3,000,000 2,010,000 605,000 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 no...
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...
The South Division of Wiig Company reported the following data for the current year. Sales Variable costs Controllable fixed costs Average operating assets $2,900,000 1,914,000 600,000 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 no change in...
The South Division of Wiig Company reported the following data for the current year. Sales $2,950,000 Variable costs 1,976,500 Controllable fixed costs 605,000 Average operating assets 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. Increase sales by $300,000 with no change in the...
The South Division of Sheridan Company reported the following
data for the current year.
Sales
$3,050,000
Variable costs
2,013,000
Controllable fixed costs
600,000
Average operating assets
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 no change in...
Question 3 1 pts Advantages of a flexible budget include all of these, EXCEPT: it is appropriate for fixed costs, but not variable costs. it is adaptable to changes in operating conditions it can be prepared for individual budgets in the Master Budget all of the above are advantages of a flexible budget Question 4 1pts An investment center manager would most likely have his/her performance evaluation based on: return on investment controllable margin. how well he/she was able to...
Please understand that an incorrect answer from you will trigger
negative feedback and a downvote from me.
The Cheap Division of TopTime Corporation has the following annual data. Sales - $700,000 Contribution margin $130,000 Controllable fixed costs $50,000 Average total operating assets $2,000,000 How much is the ROI for the year? 4% 6.5% 28.5% 35%
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