Cullumber produces and sells two products—aluminum and vinyl. Each of these products is made in a dedicated manufacturing facility, and the product line managers are evaluated based on the product line’s return on investment. The following data is from the most recent year of operations. Aluminum Vinyl Sales $4,800,000 $4,200,000 Variable costs 2,304,000 2,355,000 Direct fixed costs 1,728,000 1,530,000 Average assets 3,200,000 1,500,000 QUESTION Calculate return on investment for each product line. (Round ROI to 2 decimal places, e.g. 5.12%.)
Cullumber produces and sells two products—aluminum and vinyl. Each of these products is made in a dedicated manufacturing facility, and the product line managers are evaluated based on the product line’s return on investment. The following data is from the most recent year of operations. Aluminum Vinyl Sales $4,800,000 $4,200,000 Variable costs 2,304,000 2,355,000 Direct fixed costs 1,728,000 1,530,000 Average assets 3,200,000 1,500,000 QUESTION Calculate return on investment for each product line. (Round ROI to 2 decimal places, e.g. 5.12%.)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter12: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 12.2MBA
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Question
Ch 10 Q 8
Cullumber produces and sells two products—aluminum and vinyl. Each of these products is made in a dedicated manufacturing facility, and the product line managers are evaluated based on the product line’s
|
Aluminum
|
Vinyl
|
||||
|---|---|---|---|---|---|
|
Sales
|
$4,800,000 | $4,200,000 | |||
|
Variable costs
|
2,304,000 | 2,355,000 | |||
|
Direct fixed costs
|
1,728,000 | 1,530,000 | |||
|
Average assets
|
3,200,000 | 1,500,000 |
QUESTION
Calculate return on investment for each product line. (Round ROI to 2 decimal places, e.g. 5.12%.)
|
Aluminum
|
Vinyl
|
||
|---|---|---|---|
|
ROI
|
enter percentages rounded to 2 decimal places % | enter percentages rounded to 2 decimal places % |
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