Information for a company's Investment centers follows. Investment Center Mobile devices Customer support Income $ 309,400 223,600 Sales $ 3,739,000 1,789,000 Average Assets $ 1,700,000 1,300,000 Enter answers in the tabs below. 25:06 Required 1 Required 2 Required 3 The Mobile devices center has an investagent opportunity that will produce a 9% return on investment. Assuming a target income of 10% of average assets, should the company accept this investment opportunity? Accept new investment opportunity?
Information for a company's Investment centers follows. Investment Center Mobile devices Customer support Income $ 309,400 223,600 Sales $ 3,739,000 1,789,000 Average Assets $ 1,700,000 1,300,000 Enter answers in the tabs below. 25:06 Required 1 Required 2 Required 3 The Mobile devices center has an investagent opportunity that will produce a 9% return on investment. Assuming a target income of 10% of average assets, should the company accept this investment opportunity? Accept new investment opportunity?
Chapter5: Evaluating Operating And Financial Performance
Section: Chapter Questions
Problem 1EP
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Transcribed Image Text:Information for a company's Investment centers follows.
Investment Center
Mobile devices
Customer support
Income
$ 309,400
223,600
Sales
$ 3,739,000
1,789,000
Average Assets
$ 1,700,000
1,300,000
Enter answers in the tabs below.
25:06
Required 1 Required 2
Required 3
The Mobile devices center has an investagent opportunity that will produce a 9% return on investment. Assuming a target
income of 10% of average assets, should the company accept this investment opportunity?
Accept new investment opportunity?
<Required 2
Transcribed Image Text:A department reports sales of $1,320,000 and cost of goods sold of $927,000. Its direct expenses include salaries of $235,000 and
depreciation on equipment of $95,000. The department is also allocated $51,000 of service department expenses.
Prepare a departmental contribution to overhead report
Departmental Contribution to Overhead
For Year Ended December 31
Department
Gross profit
Direct expenses
Total direct expenses
Departmental contribution to overhead
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