Answered: Crude Company has 2

Business

Accounting

Crude Company has 2

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 16E

See similar textbooks

Related questions

Q: If average revenue per unit is expected to be $25 and cost of goods sold are expected to be $17 per…

A: The breakeven point represents the level of sales or units sold at which total revenue equals total…

Q: The equation which reflects a CVP income statement is a. Sales - Variable costs - Fixed costs = Net…

A: Introduction:- CVP analysis is used to identify the changes in costs and volume affect a company's…

Q: Consider the following information for a given business. Sale revenue =GHS40,000 VC per unit…

A: The contribution margin is computed by subtracting the variable cost from the sale revenue. The…

Q: Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS), the…

A: Contribution margin is the amount after deducting variable expenses from sales.

Q: Use the following information about Rat Race Home Security, Inc. to answer the questions: Average…

A: Degree of Financial leverage is calculated as operating income divided by earnings before taxes.

Q: Alpha Company’s Manager is considering selling price for product C. The company is using Absortion…

A: Absorption Costing: The absorption costing method is used by the companies to calculate the costs…

Q: A company has three investment alternatives. The alternatives have similar economic lives. The…

A: Return on investment represents the income earned due to the amount invested by the company. It is…

Q: Marketing: Determine the marketing return on sales (marketing ROS) and return on marketing…

A: Determine the net marketing contribution:

Q: Draw up a marginal cost statement on the basis that 12,000 units will be sold and calculate the net…

A: 1. Breakeven point is the point where there is no profit and loss. At this point the company has…

Q: following are the cost data associated with water purification devices. a.The initial cost of one…

A: In Cost based pricing, pricing of a product should be calculated on the basis of total cost incurred…

Q: A company produces and sells a product. The company has found that the costto produce x units of the…

A: The objective of the question is to find the number of units the company should produce and sell to…

Q: A company has assessed the profitability of its three products as shown here: Product A Product B…

A: In the given question, product C is a loss-making product. Currently, the company is earning a loss…

Q: Find out BEP in units and value with the following data: Fixed cost - $50000 Variable cost - $40…

A: BEP in units : Fixed Cost/ (Selling Price per unit - Variable Cost Per unit) BEP in value : Fixed…

Q: Required Information [The following information applies to the questions displayed below.] Megamart…

A: Return on investment (ROI) is calculated by dividing net operating income by average operating…

Q: Use the following information to answer #7 and #8 An investment banker is analyzing two companies as…

A: Operating Leverage: Operating leverage is a cost-accounting formula that measures the degree to…

Q: Megamart provides the following information on its two investment centers. Investment Center…

A: The answer is in the explanation section below.Explanation:Electronics Center:1. Income:…

Q: • Use the below information to fill out the income statement and answer the questions 4-10 below:…

A: Net income is the amount of profit or loss which is computed by deducting the costs from the total…

Q: Sales sent centers, Indigo Company accumulates the following data: Controllable margin Average…

A: Return on investment can be calculated as dividing controllable margin by average operating assets.…

Q: Investment Center Sales Net income Average invested assets Profit margin Investment turnover Return…

A: Return on investment helps in measuring the performance by evaluating the profit and efficiency of…

Q: Please send answer in chart set up Megamart, a retailer of consumer goods, provides the following…

A: Solution: (1). Return on investment Choose numerator / Choose denominator = Return on…

Q: Castle Home Industries is looking to invest in either Company A, B, or C. Calculate the ROI and…

A: ROI means Return on investment. It means investment is providing how much returns on an average.…

Q: Shalom Company provided you the following data: Net operating income Total liabilities Contribution…

A: Return on investment is the amount of return earned by the entity on the investment made. It is a…

Q: Golden Goodness (GG) has an investment center that had the following data: Operating Income…

A: Residual Income is what the firm earns from its assets over the firm's current operating income. It…

Q: Golden Goodness (GG) has an investment center that had the following data: Operating Income $28,000…

A: Ratios are used to analyze the current situation of the company and make any changes favourable to…

Q: Required: 1. Assume that the company uses the absorption approach to cost-plus pricing. a. Compute…

A: Manufacturing overhead costs are the total of all indirect costs incurred during the production of a…

Q: A company would like to determine various costs and points to aid them in deciding whether to expand…

A: P/V Ratio:-Profit volume ratio is the relationship between the contribution and Sales. The formula…

Q: Calculate the Operating Leverage for a business given the following data: Sales = $300,000.00…

A: The operating leverage is calculated as fixed cost divided by total cost.

Q: est Windows is a small company that installs windows. Its cost structure is as follows: elling price…

A: The contribution Margin is calculated as difference between sales and variable cost. The net income…

Q: 7. If you want net income to be $120,000, how many units must you sell ?

A: SOLUTION 7- FORMULA = NET INCOME +FIXED COST= CONTRIBUTION+VARIABLE COST=SALES 120000 + 240000 =…

Question

Crude Company has 2 product lines - product lines are considered an investment center

Average

Product Line   Sales    Net Income    Invested Assets
Toy train sets   $500,000 $300,000 $1,200,000
Toy airplanes   $400,000    $280,000    $1,000,000

Compute return on investment for Toy Train set product line. Write as a whole number

Compute return on investment for Toy airplanes product line. Write as a whole number

Using return on investment, which product line is most efficient at using assets to generate returns for the company?

Compute Residual Income for Toy Train sets. Report the amount in dollars

Compute Residual Income for Toy Airplanes. Report the amount in dollars

Which product line generated the most residual income for the company?

Compute profit margin for Toy Train set product line. Report the percentage as a whole number

Which product line generated the most net income per dollar of sales?

Formula Formula ROI (%) = Net Income Principal Amount × 100

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Solution

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Vikrambhai
Vikram Bhai
Megamart provides the following information on its two investment centers. Investment Center Electronics Sporting goods Sales $ 63,460,000 19,050,000 Income $ 3,173,000 2,286,000 Average Assets $ 16,700,000 12,700,000 Exercise 22-10 (Algo) Computing return on investment and residual income; investing decision LO A1 1. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? 2. Assume a target income of 12% of average assets. Compute residual income for each center. Which center generated the most residual income? 3. Assume the Electronics center is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? The target return is 12%.
Shalom Company provided you the following data: Net operating income Total liabilities Contribution margin Average operating assets Sales 150,000 350,000 400,000 750,000 800,000 What is the return on investment?
Calculate the return on investment (as a %) for the given company. (Round your answer to the nearest tenth of a percent.)
For its three investment centers, Indigo Company accumulates the following data: Sales Controllable margin Average operating assets 1 $2,400,000 $4,800,000 $4,800,000 1,560,000 2.208,000 6,000,000 9,600,000 The return on investment i 11 Compute the return on investment (ROI) for each center. % 111 4,080,000 12,000,000 HE %
A1 please help.....
For its three investment centers, Martinez Company accumulates the following data. | II Sales $1,920,000 $3,840,000 $3,840,000 Controllable margin 1,392,000 1,996,800 3,552,000 Average operating assets 4,800,000 7,680,000 9,600,000 Compute the return on investment (ROI) for each center. Return on investment | do % II % III % do
Please help me with show all calculation thanku
Banderas, Inc. has three investment centers, Red, Brown, and Black. The following data is available for each of these investment centers. BANDERAS, INC. DATA FOR INVESTMENT CENTERS OF COMPANY Red Operating Income $ A $ Brown E $ Sales Revenue B 1,000,000 Black I 1,500,000 Average Investment in Assets 300,000 500,000 J Profit Margin Ratio C 15% 10% Asset Turnover Ratio 4 F K Return on Investment (ROI) 25% G 25% Minimum Required Rate of Return 20% H L Residual Income D 50,000 30,000 REQUIRED: Using the attached answer sheets, compute the missing items A through L for Banderas, Inc. Round all percentages to two decimal places (four decimal places in all), all dollar amounts to the nearest whole dollar, and all other amounts to two decimal places.
Use the following information to answer #7 and # 8 An investment banker is analyzing two companies as possible investments, but is concerned about the impact that each company's cost structure might have on its profitability. The following CVP income statements are available for Chantal Corp. and Mantle, Inc. Chantal Corp. Mantle, Inc. Sales revenue $700,000 $700,000 Variable costs 350,000 487,500 Contribution margin 350,000 212,500 Fixed costs 225.000 87,500 Net income $125,000 $125.000 If sales decrease by 20% for each company, the impact on net income will be: a decrease of 10% for Chantal and a decrease of 14% for Mantle. O a decrease of 20% for Chantal and a decrease of 20% for Mantle. O a decrease of 56% for Chantal and a decrease of 34% for Mantle. O a decrease of 56% for Chantal and a decrease of 78% for Mantle.
Calculate the return on investment (as a %) for the given company. (Round your answer to the nearest tenth of a percent.) Company Net Sales Cost ofGoods Sold GrossProfit OperatingExpenses a countertop installer $762,500 $487,560 $274,940 $176,410 Net Profit Gross ProfitMargin (%) Net ProfitMargin (%) Owner's Equity Return onInvestment (%) $98,530 36.1% 12.9% $429,210 %