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.
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Blossom Company had the following operating data for the current year: sales, $460000; contribution margin, $100000; total fixed costs (controllable), $50000; and average total operating assets, $250000. If management is able to improve its contribution margin by $30000 and hold its fixed costs constant, what would Blossom's ROI be for the year? O 20%. O 32%. O 40%. O 17%.
Sheridan Company had the following operating data for the year for its computer division: sales, $700000; contribution margin, $171000; total fixed costs (controllable), $119000; and average total operating assets, $300000. What is the controllable margin for the year? O $171000. O 57%. O $52000. O 17.3%.
Meargia Plastics is evaluating its plastic bottles division. The accounting manager has come up with the following data for the year: contribution margin of $570,000, controllable fixed of $228,000, and noncontrollable fixed costs of $57,000. Required: 1. What is the controllable margin? Controllable Margin 2. What is the total contribution by profit center (CPC)?
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?
Meargia Plastics is evaluating its plastic bottles division. The accounting manager has come upwith the following data for the year: contribution margin of $500,000, controllable fixed costs of$200,000, and noncontrollable fixed costs of $50,000.What is the controllable margin and total contribution by profit center (CPC)?a. Controllable margin: $200,000; CPC: $50,000b. Controllable margin: $50,000; CPC: $500,000c. Controllable margin: $250,000; CPC: 300,000d. Controllable margin: $300,000; CPC: $250,000
Please provide this question solution accounting
Swifty Corporation recorded operating data for its shoe division for the year as follows: Sales $600000 Contribution margin 150000 Total fixed costs 120000 Average total operating assets 400000 What is the ROI for the year if management is able to identify a way to improve the contribution margin by $40000, assuming fixed costs are held constant? 15% ° 17% 8% 18%
Bramble Corp.recorded operating data for its shoe division for the year. The company's desired return is 5%. Sales Contribution margin Total direct fixed costs Average total operating assets $12400000 O 77% O $90000 O 3% O $220000 400000 180000 520000 What is the controllable margin for the year?

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