Shaq Company operates with three segments: Louisiana, Orlando, and Los Angeles. Data regarding these segments is as follows: Louisiana Segment Orlando Segment Los Angeles Segment Contribution to indirect expenses $328,500 $207,600 $155,500 Assets directly used & identified with segment $1,858,700 $1,410,000 $742,600 1. Calculate the return on investment for each segment. Rank them from highest to lowest. Round percent to 1 decimal place. Louisiana Segment Orlando Segment Los Angeles Segment Segment Net Income Investment base (assets) ROI (%) Rankings (1,2, or 3, where 1 is the best) 2. Assume the cost of capital is 14% for a segment. Calculate residual income for each segment. Rank them from highest to lowest. Round percent to 1 decimal place. Louisiana Segment Orlando Segment Los Angeles Segment Segment Net Income Investment base (assets) Cost of Capital (%) Minimum Income Residual Income Rankings (1,2, or 3, where 1 is the best)
Shaq Company operates with three segments: Louisiana, Orlando, and Los Angeles. Data regarding these segments is as follows: Louisiana Segment Orlando Segment Los Angeles Segment Contribution to indirect expenses $328,500 $207,600 $155,500 Assets directly used & identified with segment $1,858,700 $1,410,000 $742,600 1. Calculate the return on investment for each segment. Rank them from highest to lowest. Round percent to 1 decimal place. Louisiana Segment Orlando Segment Los Angeles Segment Segment Net Income Investment base (assets) ROI (%) Rankings (1,2, or 3, where 1 is the best) 2. Assume the cost of capital is 14% for a segment. Calculate residual income for each segment. Rank them from highest to lowest. Round percent to 1 decimal place. Louisiana Segment Orlando Segment Los Angeles Segment Segment Net Income Investment base (assets) Cost of Capital (%) Minimum Income Residual Income Rankings (1,2, or 3, where 1 is the best)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 16E
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Question
Shaq Company operates with three segments: Louisiana, Orlando, and Los Angeles.
Data regarding these segments is as follows:
return on investment for each segment. Rank them from highest to lowest. Round percent to 1 decimal place.
2. Assume the cost of capital is 14% for a segment. Calculate residual income for each segment. Rank them from highest to lowest. Round percent to 1 decimal place.
Data regarding these segments is as follows:
Louisiana Segment |
Orlando Segment |
Los Angeles Segment |
|
---|---|---|---|
Contribution to indirect expenses | $328,500 | $207,600 | $155,500 |
Assets directly used & identified with segment | $1,858,700 | $1,410,000 | $742,600 |
1. Calculate the
Louisiana Segment |
Orlando Segment |
Los Angeles Segment |
|
---|---|---|---|
Segment Net Income | |||
Investment base (assets) | |||
ROI (%) | |||
Rankings (1,2, or 3, where 1 is the best) |
2. Assume the cost of capital is 14% for a segment. Calculate residual income for each segment. Rank them from highest to lowest. Round percent to 1 decimal place.
Louisiana Segment |
Orlando Segment |
Los Angeles Segment |
|
---|---|---|---|
Segment Net Income | |||
Investment base (assets) | |||
Cost of Capital (%) | |||
Minimum Income | |||
Residual Income | |||
Rankings (1,2, or 3, where 1 is the best) |
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