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 contribution margin percentage. | |
2. | Reduce variable costs by $155,000. | |
3. | 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%.)
Return on Investment |
|
% |
(b) Using the ROI formula, compute the ROI under
each of the proposed courses of action. (Round ROI to 2
decimal places, e.g. 1.57%.)
Return on investment |
|||
Action 1 |
|
% | |
Action 2 |
|
% | |
Action 3 |
|
% |
The South Division of Sheridan Company reported the following data for the current year. Sales $3,050,000 Variable...
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 1,947,000 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. 1. Increase sales by $300,000 with no change in...
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 $3,050,000 1,982,500 600,000 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...
Current Attempt in Progress The South Division of Wiig Company reported the following data for the current year. Sales Variable costs $3,050,000 2.013,000 610,000 5,000,000 Controllable fixed costs Average operating assets 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...
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 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...
Exercise 10-17 (Video) The South Division of Wiig Company reported the following data for the current year Sales $3,000,000 Variable costs 1,950,000 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 believes it is feasible to consider the following independent courses of action the South Division to submit plans to improve ROI in the next year. The manager 1. Increase sales by $300,000 with no...
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...
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...
Need help with question B please
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 1,943,000 590,000 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...