Please do not give solution in image format thanku For its three investment centers, Concord Company accumulates the following data:IIIISales$2,280,000$4,560,000$4,560,000Controllable margin1,596,0002,280,0004,134,400Average operating assets5,700,0008,350,000 11,400,000The company expects the following changes for investment centers I, II, and III in the next year: investmentcenter I to increase sales 15%, investment center II to decrease controllable fixed costs $392,000, andinvestment center Ill to decrease average operating assets $520,000.Compute the expected return on investment (ROI) for each center. Assume investment center I has acontribution margin percentage of 70%. (Round ROI to 1 decimal place, e.g. 1.5%.)Theexpectedreturn oninvestmenteTextbook and MediaSave for Laterdo%do%III%

2. Investment Center II:a. Calculate the expected decrease in controllable fixed costs:Decrease in…

Answered: For its three investment centers,…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 3PB: The income statement comparison for Rush Delivery Company shows the income statement for the current...

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For its three investment centers, Gerrard Company accumulates the following data: II III Sales $1,900,000 $4,075,000 $4,069,000 Controllable margin Average operating assets 912,240 1,838,390 4,209,800 5,068,000 7,993,000 12,028,000 The centers expect the following changes in the next year: (I) increase sales 14%; (II) decrease controllable fixed costs $376,000; (III) decrease average operating assets $491,000. Compute the expected return on investment (ROI) for each center. Assume center I has a contribution margin percentage of 70%. (Round ROI to 1 decimal place, e.g. 1.5.) I II III The expected return on investment % %
For its three investment centers, Fantastic Company accumulates the following data: II III Sales $1,700,000 $4,035,000 $4,069,000 Controllable margin 912,240 1,848,390 4,209,800 Average operating assets 5,068,000 7,993,000 12,028,000 The centers expect the following changes in the next year: (I) increase sales 15%; (II) decrease controllable fixed costs $321,000; (III) decrease average operating assets $411,000. Compute the expected return on investment (ROI) for each center. Assume center I has a contribution margin percentage of 65%. (Round ROI to 1 decimal place, e.g. 1.5.)
For its three investment centers, Gerrard Company accumulates the following data: Sales Controllable margin Average operating assets I $2,000,000 1,400,000 5,000,000 II $4,000,000 2,000,000 8,000,000 ||| $4,000,000 3,600,000 10,000,000 The centers expect the following changes in the next year: (1) increase sales 15%; (II) decrease costs $400,000; (III) decrease average operating assets $500,000. Compute the expected return on investment (ROI) for each center. Assume center I has a controllable margin percentage of 70%.
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Two investment centers at Marshman Corporation have the following current-year income and asset data: Investment Investment Center A Center B Investment center income $ 410,000 $ 524,700 Investment center average invested assets $2,430,000 $1,980,000 The return on investment (ROI) for Investment Center B is: Multiple Choice 38.5% 21.2% 25.5% 377.4%
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Selected data from an investment center of IROL Inc. follow:Sales $8,000,000Net book value of assets, beginning 2,500,000Net book value of assets, ending 2,600,000Net operating income 640,000Minimum rate of return 12%Required1. Calculate return on sales (ROS), asset turnover (AT), and return on investment (ROI).2. Calculate residual income (RI).
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For its three investment centers, Gerrard Company accumulates the following data: I II III Sales $2,062,000 $3,914,000 $3,905,000 Controllable margin 848,640 2,161,620 4,103,120 Average operating assets 4,992,000 8,006,000 12,068,000 Compute the return on investment (ROI) for each center. I II III The return on investment % % % eTextbook and Media
The income statement comparison for Rush Delivery Company shows the income statement for the current and prior year. A. Determine the operating income (loss) (dollars) for each year. B. Determine the operating income (percentage) for each year. C. The company made a strategic decision to invest in additional assets in the current year. These amounts are provided. Using the total assets amounts as the investment base, calculate the ROI. Was the decision to invest additional assets in the company successful? Explain. D. Assuming an 8% cost of capital, calculate the RI for each year. Explain how this compares to your findings in part C.
Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the following income statement for the last year: At the beginning of last year, Elway had 28,300,000 in operating assets. At the end of the year, Elway had 23,700,000 in operating assets. Required: 1. Compute average operating assets. 2. Compute the margin and turnover ratios for last year. (Note: Round the answer for margin ratio to two decimal places.) 3. Compute ROI. (Note: Round answer to two decimal places.) 4. CONCEPTUAL CONNECTION Briefly explain the meaning of ROI. 5. CONCEPTUAL CONNECTION Comment on why the ROI for Elway Company is relatively high (as compared to the lower ROI of a typical manufacturing company).

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