Seere Company provided the following income statement for last year. Sales Less: Variable expenses Contribution margin Less: Fixed expenses Operating income $240,000 195,000 $ 45,000 37,800 7,200 At the beginning of last year, Seere had $78,650 in operating assets. At the end of the year, Seere had $81,350 in operating assets. Required 1. Compute average operating assets. 2. Compute the margin and turnover ratios for last year. Compute ROI.
Seere Company provided the following income statement for last year. Sales Less: Variable expenses Contribution margin Less: Fixed expenses Operating income $240,000 195,000 $ 45,000 37,800 7,200 At the beginning of last year, Seere had $78,650 in operating assets. At the end of the year, Seere had $81,350 in operating assets. Required 1. Compute average operating assets. 2. Compute the margin and turnover ratios for last year. Compute ROI.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter11: Performance Evaluation And Decentralization
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Problem 27E: Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the...
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![452 Part 4/ Planning and Control
10-7
Seere Company provided the following income statement for last year.
Margin; Turnover;
ROI; Average
Operating Assets
LO3
Sales
Less: Variable expenses
Contribution margin
Less: Fixed expenses
Operating income
$240,000
195,000
$ 45,000
37,800
247,200
At the beginning of last year, Seere had $78,650 in operating assets. At the end of
the year, Seere had $81,350 in operating assets.
Required
1. Compute average operating assets.
2. Compute the margin and turnover ratios for last year. Compute ROI.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcc9c73d7-ac95-462c-bd2b-b3a11a90f52c%2F88258f01-3160-43e4-a0a8-77a55428cbfa%2Frtf9kwo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:452 Part 4/ Planning and Control
10-7
Seere Company provided the following income statement for last year.
Margin; Turnover;
ROI; Average
Operating Assets
LO3
Sales
Less: Variable expenses
Contribution margin
Less: Fixed expenses
Operating income
$240,000
195,000
$ 45,000
37,800
247,200
At the beginning of last year, Seere had $78,650 in operating assets. At the end of
the year, Seere had $81,350 in operating assets.
Required
1. Compute average operating assets.
2. Compute the margin and turnover ratios for last year. Compute ROI.
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