The east Division of Mari Company reported the following data for the current year. Sales of $3,017,600, variable costs of $1,948,900, controllable fixed costs of $605,800, and average operating assets of $4,921,300. Why is top management unhappy with the east division? [General Accounting 6.7 - 7 PTS]

The east Division of Mari Company reported the following data for the current year. Sales of $3,017,600, variable costs of $1,948,900, controllable fixed costs of $605,800, and average operating assets of $4,921,300. Why is top management unhappy with the east division? [General Accounting 6.7 - 7 PTS]

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 14.16E

See similar textbooks

Similar questions

The West Division of Nieto Company reported the following data for the current year. Sales of $3,017,600, costs variable of$1,948,900, controllable fixed costs of $605,800, and average operating assets of $4,921,300. Why is top management unhappy with the west division?
Dickonson Products is a division of a major corporation. The following data are for the last year of operations: Sales... $16,640,000 $399,360 Net operating income Average operating assets $4,000,000 The company's minimum required rate of return. 18% The division's residual income is closest to: Select one: a. $(320,640) b. $1,119,360 c. $399,360 d. $(2,595,840)
Dacker Products is a division of a major corporation. The following data are for the most recent year of operations: Sales Net operating income Average operating assets $ 36,680,000 $ 2,908,960 $ 8,200,000 The company's minimum required rate of return The division's margin used to compute ROI is closest to: Multiple Choice о 30.3% 35.5% 22.4% о 7.9% 14%
The South Division of Wiig Company reported the following data for the current year. Sales Variable costs Controllable fixed costs Average operating assets 1. 2. 3. Top management is unhappy with the investment center's return on investment (ROI). It asks the manager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action. Return on Investment $2,950,000 1,947,000 Increase sales by $300,000 with no change in the contribution margin percentage. Reduce variable costs by $155,000. Reduce average operating assets by 4%. Action 1 595,000 (a) Compute the return on investment (ROI) for the current year. (Round ROI to 2 decimal places, e.g. 1.57%.) Action 2 5,000,000 Action 3 (b) Using the ROI formula, compute the ROI under each of the proposed courses of action. (Round ROI to 2 decimal places, e.g. 1.57%.) Return on investment do % % % %
Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Multiple Choice The break-even in sales dollars for Division Q is closest to: $291,760 $211,027 $227,175 Total Company $ 510,000 312, 120 197,880 113,360 $395,760 84,520 65,040 $ 19,480 Division L $ 153,000 87,210 65,790 35, 280 $ 30,510 Division Q $ 357,000 224,910 132,090 78,080 $ 54,010
Jemmott Corporation has two divisions: Western Division and Eastern Division. The following report is for the most recent operating period: Total Company Western Division Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Eastern Division $ 406,000 $ 188,000 $ 218,000 111,880 63,920 47,960 294,120 124,080 170,040 191,000 85,000 106,000 103,120 39,080 64,040 69,020 31,960 37,060 $ 34,100 $ 7,120 $ 26,980 The common fixed expenses have been allocated to the divisions on the basis of sales. The company's overall break-even sales is closest to: Multiple Choice $94,243 $271,743 $264,685 $358,929
The west division of cecchetti corporation... financial accounting
The South Division of Novak Company reported the following data for the current year. Sales $3,050,000 Variable costs 2,013,000 Controllable fixed costs 610,000 Average operating assets 5,000,000 Top management is unhappy with the investment center’s return on investment (ROI). It asks the manager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action. 1. Increase sales by $300,000 with no change in the contribution margin percentage. 2. Reduce variable costs by $150,000. 3. Reduce average operating assets by 4.00%. (a) Compute the return on investment (ROI) for the current year. (Round ROI to 2 decimal places, e.g. 1.57%.) Return on Investment enter the return on investment in percentages % (b) Using the ROI equation, compute the ROI under each of the proposed courses of action. (Round ROI to 2 decimal places, e.g. 1.57%.)…
The South Division of Wiig Company reported the following data for the current year. Sales Variable costs Controllable fixed costs Average operating assets 1. 2 $3,000,000 1,950,000 Top management is unhappy with the investment center's return on investment (ROI). It asks the manager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action. 3. 600,000 5,000,000 Increase sales by $300,000 with no change in the contribution margin percentage. Reduce variable costs by $150,000. Reduce average operating assets by 6.25%. (a) Compute the return on investment (ROI) for the current year. (Round ROI to 2 decimal places, e.g. 1.57%)
Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below: Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Multiple Choice The break-even in sales dollars for Division Q is closest to: O $266,820 $229,647 $196,879 Total Company $485,000 320,100 164,900 107,480 $329,800 Division L Divisi $318, 209, 108, 78, $ 30, $167,000 110,220 56,780 29,400 57,420 $ 27,380 51,860 $5,560
Far Sight is a division of a major corporation. The following data are for the latest year of operations: Sales $24,480,000 Net operating Income $1,738,080 Average operating assets $6,000,000 The company’s minimum required rate of return 16% Required: a. What is the division's return on investment (ROI)?b. What is the division's residual income?
Loon Products is a division of a major corporation. Last year the division had total sales of $11,650,000, net operating income of $1,141,700, and average operating assets of $3,495,000. The company's minimum required rate of return is 11%. 11 The division's residual income is closest to: А. $ 1,141,700 В. $ 757,250 (768,900) 1,526,150 None of the above C. $ D. $ Е.