Alexi Division of Nice Company makes and sells only one product. Annual data on Alexi Division's single products follows: Unit selling price Unit variable cost Total fixed cost Average operating assets Minimum required rate of return 12. If Alexi sells 15,000 units per year, how much is the residual income? 13. If Alexi sells 16,000 units per year, what is the return on investment (ROI)? 14. Suppose the manager of Alexi division desires a return on investment of 22%. In order to achieve this goal, how many units per year Alexi division must sell? 15. Suppose the manager of Alexi division desires an annual residual income of P45,000. In order to achieve this, how many units Alexi division should sell? P50 30 200,000 750,000 12%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%

Solution 12 13 14 15 pls thanks

(Problem is for questions 12 - 15)
Alexi Division of Nice Company makes and sells only one product. Annual data on Alexi
Division's single products follows:
Unit selling price
Unit variable cost
Total fixed cost
Average operating assets
Minimum required rate of return
P50
30
200,000
750,000
12%
12. If Alexi sells 15,000 units per year, how much is the residual income?
13. If Alexi sells 16,000 units per year, what is the return on investment (ROI)?
14. Suppose the manager of Alexi division desires a return on investment of 22%. In order to
achieve this goal, how many units per year Alexi division must sell?
15. Suppose the manager of Alexi division desires an annual residual income of P45,000. In
order to achieve this, how many units Alexi division should sell?
Transcribed Image Text:(Problem is for questions 12 - 15) Alexi Division of Nice Company makes and sells only one product. Annual data on Alexi Division's single products follows: Unit selling price Unit variable cost Total fixed cost Average operating assets Minimum required rate of return P50 30 200,000 750,000 12% 12. If Alexi sells 15,000 units per year, how much is the residual income? 13. If Alexi sells 16,000 units per year, what is the return on investment (ROI)? 14. Suppose the manager of Alexi division desires a return on investment of 22%. In order to achieve this goal, how many units per year Alexi division must sell? 15. Suppose the manager of Alexi division desires an annual residual income of P45,000. In order to achieve this, how many units Alexi division should sell?
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education