(b)Assume the division is an investment center, and average operating assets were $1,000,000. The noncontrollable fixed costs arecontrollable at the investment center level. Compute ROI. (Round answer to 2 decimal places, eg. 15.25%.)Return on investmentAttempts: 0 of 1 usedSubmit AnswerSave for Later The Camping Division of JA Company is operated as a profit center. Sales for the division were budgeted for 2020 at $694,000, Theonly variable costs budgeted for the division were cost of goods sold ($342,000) and selling and administrative ($48,000). Fixed costswere budgeted at $79,000 for cost of goods sold, $71,000 for selling and administrative, and $68,000 for noncontrollable fixed costs.Actual results for these items were:Sales$673,000Cost of goods soldVariable318,000Fixed84,000Selling and administrativeVariable49,000Fixed52,000Noncontrollable fixed68,000

Return on investment (ROI) is used to determine the efficiency of investment by measuring the…

(b) Assume the division is an investment center, and average operating assets were $1,000,000, The noncontrollable fixed costs are controllable at the investment center level. Compute ROI. (Round answer to 2 decimal places, eg. 15.25 %.) Return on investment Attempts: 0 of1 used Submit Answer Save for Later

(b) Assume the division is an investment center, and average operating assets were $1,000,000, The noncontrollable fixed costs are controllable at the investment center level. Compute ROI. (Round answer to 2 decimal places, eg. 15.25 %.) Return on investment Attempts: 0 of1 used Submit Answer Save for Later

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The South Division of Bramble Company reported the following data for the current year. Sales Variable costs Controllable fixed costs Average operating assets 1. 2. 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. 3. Return on Investment $2,900,000 Increase sales by $300,000 with no change in the contribution margin percentage. Reduce variable costs by $160,000. Reduce average operating assets by 3.00%. 1,943,000 (a) Compute the return on investment (ROI) for the current year. (Round ROI to 2 decimal places, e.g. 1.57%) Action 1 600,000 5,000,000 Action 2 Action 3 (b) Using the ROI equation, compute the ROI under each of the proposed courses of action. (Round ROI to 2 decimal places, e.g. 1.57%) Return on investment % % 1 % %
Accounting - ROI
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genow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Lo... r Operating Leverage Teague Co. reports the following data: Sales Variable costs Contribution margin Fixed costs $480,000 264,000 $216,000 175,200 $40,800 Income from operations Determine Teague Co.'s operating leverage. Round your answer to one decimal place.
Using the following data, estimate the new Return on Investment if there is a 11% decrease in the average operating assets - with the new average operating assets as the base. Sales $2,565,862 Contribution margin 48% Controllable fixed costs 293,294 Average operating assets $4,671,197 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.
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Dd3. For the most recent year, Petunia Company had the following data for its Clarkston Division, an investment center: total contribution margin—$671,110 budget, $695,741 actual; controllable fixed costs—$298,900 budget, $295,702 actual. Average operating assets for the year were $1,959,045. Determine the actual return on investment.
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