lamengo Co is a sporting goods manufacturing. It has the following three divisions: Basketball Football Division Soccer Division Division Sales $1,250,000 Net operating income $25,000 $75,000 $36,000 Average operating assets $300,000
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![Flamengo Co is a sporting goods manufacturing. It has the following three divisions:
Basketball
Football Division
Soccer Division
Division
Sales
$1,250,000
Net operating income
$25,000
$75,000
$36,000
Average operating assets
$300,000
Return on investment
20%
15%
Margin
0.1
0.08
Turnover
1.8
Target ROI
10%
15%
12%
What is the turnover of the Football Division?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff20bf9de-03a3-4ff1-b6cb-4018cf63050d%2Fcaa64149-5fcc-464b-a054-52d10bf39a36%2Ftxwmrfu_processed.jpeg&w=3840&q=75)
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- Operating income for profit center The centralized Data Analytics Department of Drewlink Company has expenses of $340,000. The department has provided a total of 8,000 hours of service for the period. The Retail Division has used 2,000 hours of data analytics service during the period, and the Commercial Division has used 6,000 hours of data analytics service. Additional data for the two divisions is following below: Retail Division Commercial Division Sales Cost of goods sold $2,550,000 1,450,000 $1,700,000 -750,000 230,000 170,000 Selling expenses Determine the divisional operating income for the Retail Division and the Commercial Division. Do not round interim calculations. Drewlink Company Divisional Operating income Line Item Description Retail Division Commercial Division Sales Cost of goods sold Support department allocations X Operating income FeedbackDarby Company, operating at full capacity, sold 129,600 units at a price of $123 per unit during the current year. Its income statement is as follows: Sales $15,940,800 Cost of goods sold 5,658,000 Gross profit $10,282,800 Expenses: Selling expenses $2,829,000 Administrative expenses 1,681,000 Total expenses 4,510,000 Income from operations $5,772,800 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 60% 40% Selling expenses 50% 50% Administrative expenses 30% 70% Management is considering a plant expansion program for the following year that will permit an increase of $1,476,000 in yearly sales. The expansion will increase fixed costs by $196,800, but will not affect the relationship between sales and variable costs. Required: 1. Determine the total variable costs and the total fixed costs for the current year. Total variable costs $fill in the blank 1…LuLu Ltd has two divisions: Pulp Division and Paper Division. The Pulp Division produces paper pulp which the Paper Division purchases to produce toilet paper. The following information relates to the production of paper pulp. Pulp Division $800.00 Market price of paper pulp per metric ton Variable costs per metric ton: -Processing cost -Marketing cost Fixed cost per metric ton $375.00 $75.00 $15.00 The Pulp division has a monthly capacity of 1,000 metric tonnes of paper pulp, of which 750 tonnes are sold internally and 250 tonnes are sold externally. Due to a sudden surge in demand for toilet paper, Paper division now requires an extra 125 tonnes of paper pulp from Pulp Division. Calculate the transfer price of one metric ton of paper pulp using the general transfer-pricing formula. Select one: a. $450.00 b. $800.00 c. $375.00 O d. $440.00 e. $425.00
- The Crunchy Granola Company is a diversified food company that specializes in all natural foods. The company has three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the year ended June 30, 20Y7, are as follows: Line Item Description CerealDivision Snack CakeDivision RetailBakeries Division Sales $25,000,000 $8,000,000 $9,750,000 Cost of goods sold 16,670,000 5,575,000 6,795,000 Operating expenses 7,330,000 1,945,000 2,272,500 Invested assets 10,000,000 4,000,000 6,500,000 The management of The Crunchy Granola Company is evaluating each division as a basis for planning a future expansion of operations. Required: Question Content Area 1. Prepare condensed divisional income statements for the three divisions, assuming that there were no support department allocations. The Crunchy Granola CompanyDivisional Income StatementsFor the Year Ended June 30, 20Y7 Line Item…Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of 7.5 percent. Selected financial information (in thousands of dollars) for the first year of business follows: Sales revenue Income Divisional assets (beginning of year) Current liabilities (beginning of year) RAD expenditures Carolinas $1,600 160 1,000 240 800 Northeast $5,500 Complete this question by entering your answers in the tabs below. 432 1,500 240 720 R&D is assumed to benefit two periods. All R&D is spent at the beginning of the year. Required: a-1. Evaluate the performance of the two divisions assuming Lasky Manufacturing uses economic value added (EVA). a-2. Which division had the better performance?Darby Company, operating at full capacity, sold 124,200 units at a price of $84 per unit during the current year. Its income statement is as follows: Sales $10,432,800 Cost of goods sold 3,696,000 Gross profit $6,736,800 Expenses: Selling expenses $1,848,000 Administrative expenses 1,120,000 Total expenses 2,968,000 Income from operations $3,768,800 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 60% 40% Selling expenses 50% 50% Administrative expenses 30% 70% Management is considering a plant expansion program for the following year that will permit an increase of $924,000 in yearly sales. The expansion will increase fixed costs by $123,200, but will not affect the relationship between sales and variable costs. 1. Determine the total variable costs and the total fixed costs for the current year. Total variable costs $fill in the blank 1 Total fixed…
- The centralized computer technology department of Hardy Company has expenses of $320,000. The department has provided a total of 4,000 hours of service for the period. The Retail Division has used 2,750 hours of computer technology service during the period, and the Commercial Division has used 1,250 hours of computer technology service. Additional data for the two divisions is following below: Retail Division Commercial Division Sales $2,150,000 $1,200,000 Cost of goods sold 1,300,000 800,000 Selling expenses 150,000 175,000 Determine the divisional income from operations for the Retail Division and the Commercial Division. Do not round interim calculations. Hardy Company Divisional Income from Operations blank Retail Division Commercial Division $- Select - $- Select - - Select - - Select - $- Select - $- Select - - Select - - Select - $- Select - $- Select - - Select - - Select - Income from operations $fill in the blank 19 $fill in the blank 20 Check My Work PreviousNextIgloo corporation operates two stores A and B. the following relates to store B; Sales revenue 87,000 variable operating expenses 39,000 fixed expenses traceable to b and controllable by B 5,000 traceable to b and controllabe by others 22,000 The profit margin controllable by store B's manager os:The vice president of operations of Free Ride Bike Company is evaluating the performance of two divisions organized as investment centers. Invested assets and condensed income statement data for the past year for each division are as follows: Category Road Bike Division Mountain Bike Division Sales $1,750,000 $1,810,000 Cost of goods sold Operating expenses 1,300,000 1,440,000 202,000 236,800 800,000 Invested assets 1,400,000 Instructions a. Prepare condensed divisional income statements for the year ended December 31, 2020, assuming that there were no service department charges. b. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment for each division. (Round percentages and the investment turnover to one decimal place.) c. If management's minimum acceptable return on investment is 10%, determine the residual income for each division. d. Discuss the evaluation of the two divisions, using the performance measures…
- Glardin Outdoors is a recreational goods retailer with two divisions: Online and Stores. The two divisions both use the services of the corporate Finance and Accounting (F and A) Department. Annual costs of the F and A Department total $5.215 million a year. Managers in the two operating divisions are measured based on division operating profits. The following selected data are available for the two operating divisions: Online Stores Revenues (5000) $ 74,700 40,500 Transactions (000) 1,216.5 358.5 Required: a. What is the F and A cost that is charged to each division if divisional revenues are used as the allocation basis? b. What is the F and A cost that is charged to each division if the the number of transactions is used as the allocation basis? Complete this question by entering your answers in the tabs below. Required A Required B What is the F and A cost that is charged to each division if divisional revenues are used as the allocation basis? Note: Do not round intermediate…VW Enterprises operates three product lines. The most recent product line (division) income statements are as follows: A Total Sales $ 1,250,000 $ 2,000,000 $ 1,750,000 $ 5,000,000 Variable expenses 1,000,000 1,700,000 1,312,500 4,012,500 Contribution margin (CM) Fixed expenses 250,000 300,000 437,500 987,500 500,000 400,000 120,000 1,020,000 Net income $ (250,000) $ (100,000) $ 317,500 $ (32,500) Sales mix 25.00% 40.00% 35.00% 100.00% CM ratio 20.00% 15.00% 25.00% With Product Lines A & B appearing unprofitable, VW has decided to add Product Line D which has an expected contribution margin ratio of 22.0%. VW management believes the addition of Product Line D will increase TOTAL sales to $6.0 million. The new Product D sales also will impact the sales of Products A, B & C. The revised sales mix shows; A=15%, B=45%, and C=30%, respectively. Product D accounts for the remaining sales. Additionally, the contribution margin ratio for Products A, B & C will remain constant. Of the original…
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