General accounting Rhein Manufacturing recorded operating data for its autoaccessories division for the year. Sales = $750,000;Contribution margin = 150,000; Total direct fixed costs =90,000; Average total operating assets = 400,000; How muchis ROI for the year if management is able to identify a way toimprove the contribution margin by $30,000, assuming fixedcosts are held constant?

Step 1: Define Return On Asset (ROI)Normally, the return on asset is computed by dividing the net…

Answered: Rhein Manufacturing recorded operating…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5PB: Wellington, Inc., reports the following contribution margin income statement for the month of May....

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Wellington, Inc., reports the following contribution margin income statement for the month of May. The company has the opportunity to purchase new machinery that will reduce its variable cost per unit by $10 but will increase fixed costs by 20%. Prepare a projected contribution margin income statement for Wellington, Inc., assuming it purchases the new equipment. Assume sales level remains unchanged.
Forchen, Inc., provided the following information for two of its divisions for last year: Required: 1. For the Small Appliances Division, calculate: a. Average operating assets b. Margin c. Turnover d. Return on investment (ROI) 2. For the Cleaning Products Division, calculate: a. Average operating assets b. Margin c. Turnover d. Return on investment (ROI) 3. What if operating income for the Small Appliances Division was 2,000,000? How would that affect average operating assets? Margin? Turnover? ROI? Calculate any changed ratios (round to four significant digits).
Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.
I need step by step solution with accounting
Blue Spruce accumulates the following data for its North Division, an investment center, for the current year. Contribution margin Controllable fixed costs Average operating assets $186,000 $113,550 $700,000 Compute the ROI. (Round answer to two decimal places (e.g., 15.25%).) ROI %
What is the contribution margin ratio of this financial accounting question?
Concord Corporation recorded operating data for its auto accessories division for the year. Sales Contribution margin Total direct fixed costs Average total operating assets $750000 12.0% 38.0% 56.0% 32.0% 250000 90000 500000 How much is ROI for the year if management is able to identify a way to improve the contribution margin by $30000, assuming fixed costs are held constant?
Please provide this question solution accounting
Wildhorse Corp. reported the following: Beginning of year operating assets $3,220,000 End of year operating assets 3,020,000 Contribution margin 1,020,000 Sales 5,020,000 Controllable fixed costs 626,880 Its required return is 11%.Compute the company’s ROI.
a) Compute the breakeven sales dollars of cach product assuming the same sales mix remains constant. b) Prepare an analysis showing whether Product Z should be eliminated. The amount of change to net income should be computed. c) Assume the current demand of cach product is same as the sales volume the company has for the year. Below is the machine processing time required for cach product. Product Machine processing time in hours i. How many units should the company produce for each product if there is a constraint of only 24.000 hours of machine processing time in the year. ii. Compute the highest possible net income camed by the company. 3 2 An accountant has prepared the folowing product-line income statement for the year: Product Tatal No of mts sokd 5,000 4,000 4,000 Saks Varible enpermes 200,000 S 120,000 100,000 S 60.000 40,000 S 20,000 60,000 40,000 20,000 Cotribution mangin 80,000 40,000 20,000 Fihed expenses Rert Depreciin 10,000 12,000 8,000 5.000 6,000 2,000 2,400 3,000…
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a. Coastal Company budgets sales of $1,070,000, fixed costs of $55,400, and variable costs of $246,100. What is the contribution margin ratio for Coastal Company? % b. If the contribution margin ratio for Bushner Company is 50%, sales were $517,000, and fixed costs were $204,220, what was the operating income?

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