Fill in the blanks in the schedule below for two separate investment centers A and B. Investment Center Sales Income Average assets Profit margin Investment turnover Return on investment Investment Center A B Investment Turnover: Investment Center A B Return on investment: Investment Center A B Use the information in the table above to compute each department's contribution to overhead (both in dollars and as a percent). (Round your final answers to 2 decimal places.) Profit Margin: Numerator: Numerator: $7 $ 584,600 $ 1,580,000 Numerator: 10% 7% B $ 12,200,000 Denominator: Denominator: $7 $7 Denominator: 28 1.3 138 Profit Margin Profit margin 10.00 % % Investment Turnover Investment turnover 1.30 Return on investment. Return on investment % 13.00 %

Fill in the blanks in the schedule below for two separate investment centers A and B. Investment Center Sales Income Average assets Profit margin Investment turnover Return on investment Investment Center A B Investment Turnover: Investment Center A B Return on investment: Investment Center A B Use the information in the table above to compute each department's contribution to overhead (both in dollars and as a percent). (Round your final answers to 2 decimal places.) Profit Margin: Numerator: Numerator: $7 $ 584,600 $ 1,580,000 Numerator: 10% 7% B $ 12,200,000 Denominator: Denominator: $7 $7 Denominator: 28 1.3 138 Profit Margin Profit margin 10.00 % % Investment Turnover Investment turnover 1.30 Return on investment. Return on investment % 13.00 %

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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Time left 1:46 Which of the following statements about CVP analysis is false? O a. Unit selling price, unit variable costs, and total fixed costs are known and remain constant. Ob. All of the given answers are true. Oc. Managers use (CVP) analysis to study the behavior of and relationship among the elements such as total revenues, total costs, and income O d. Total revenues and total costs are linear in relation to output units. O e. Operating income calculations in CVP analysis are based on contribution margin not gross margin. 14:13 A O A d0 ENG 15-04-2021 re to search hp end brt sc delete home & num 23 + backspace 24 4. lock 8. 3. 6 7 V 8 A home enter 5 0 D F G J K L. pause 51 B ↑ shift 11 2 N M end alt ctrl ins
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3. If management desires a minimum acceptable return on investment of 10%, determine the residual income for each division.
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