**Using Information for Quick Study: Computing Return on Investment**The following information is provided for each Investment Center:| Investment Center | Income | Average Assets ||-------------------|-------------|-----------------|| Cameras | $6,400,000 | $29,600,000 || Phones | $2,145,000 | $16,500,000 || Computers | $900,000 | $15,200,000 |**Question: Compute Return on Investment (ROI)**Compute the return on investment for each investment center. Which center performed the best based on ROI?**Answer Feedback:**The current answer is complete but not entirely correct.**To calculate ROI, use the formula:**\[ \text{ROI} = \left(\frac{\text{Income}}{\text{Average Assets}}\right) \times 100 \]**Results:**- **Cameras:** ROI is 2.2% - **Phones:** ROI is 0.2% - **Computers:** ROI is 5.9% The correct ROI value for the Computers investment center is marked with a check.

Return on investment is used for finding out how efficiently the investment was put to use. The…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A quality control activity analysis indicated the following four activity costs of a hotel. Verifying credit card information $486,000 Customer service training 364,500 Discounting room rates due to poor customer service 243,000 Correcting charges to customer invoices 121,500 Total $1,215,000 Sales are $8,100,000 for the year. Prepare a cost of quality report. Round your answers to one decimal place, if necessary. Cost of Quality Report Quality Cost Percent of Quality Cost Percent of Total Quality Cost Classification Total Sales $ Prevention Appraisal Internal failure External failure Totals % 100 % % %
2. You are considering starting a radiology practice. Your financial projections for the first year of operations are as follows (see problem 1): Number of visits Wages and benefits Medical supplies Rent Utilities Administrative supplies Totals Fixed $1,200,000 $0 $200,000 $36,000 $0 $1,436,000 0 2,500 5,000 7,500 10,000 12,500 24,000 visits 15,000 17,500 20,000 22,500 25,000 27,500 30,000 Variable $0 $300,000 $0 $0 Furthermore, assume that the group expects to perform 24,000 procedures in the coming year at an average of $150 per visit. a. Construct the group's base case projected P&L statement. (See exhibit 5-5). b. What is the group's contribution margin per visit? c. What is the group's breakeven point in volume (number of visits? d. What volume is required to provide an operating profit of $267,125? e. What is the group's operating leverage? $30,000 $330,000 f. Provide an interpretation of the calculated operating leverage and its implication in regard to business risk. g. Sketch…
Dallas National Bank had the following activities, traceable costs, and physical flow of driver units: Activities Traceable Costs Physical flow of Driver Units Open new accounts $50,000 1,000 accounts Process deposits 36,000 400,000 deposits Process withdrawals 15,000 200,000 withdrawals Process loan applications 27,000 900 applications The above activities are used by the Memorial branch and the University branch: Memorial University New accounts 200 400 Deposits 40,000 20,000 Withdrawals 15,000 18,000 Loan applications 100 160 Refer to Dallas National Bank. What is the cost per driver unit for the deposit activity? Select one: a. $30.00 b. $0.09 c. $0.075 d. $50.00
A business has 2 grocery stores. Each grocery store is considered an investment center. Here are their performance statistics for February: Grocery Store Sales Net Income Average Invested Assets Alberta $100,000 $60,000 $500,000 San Andreas $150,000 $75,000 $600,000 Our company's target income level is 10% of average invested assets. What is the residual income for our Alberta store? *Round to dollars
Simplifying the ABC System: Approximately Relevant ABC Systems Patterson Company produces wafers for integrated circuits. Data for the most recent year are provided: Activity Inserting and sorting process activities: Expected Consumption Ratios Driver Wafer A Wafer B 1 Developing test programs $ 50,000 Engineering hours 0.25 0.75 Making probe 2. 60,000 Development hours 0.10 0.90 cards Testing products 600,000 Test hours 0.60 0.40 Setting up 4. 135,000 Number of batches 0.55 0.45 batches Engineering Number of change 5. 90,000 0.15 0.85 design orders Handling wafer 6. 300,000 Number of moves 0.45 0.55 lots 7. Inserting dies 700,000 Number of dies 0.70 0.30 Procurement process activities: Purchasing Number of 8. 400,000 0.20 0.80 materials purchase orders Unloading 9. 60,000 materials Number of receiving orders 0.35 0.65 Inspecting 10. 75,000 Inspection hours 0.65 0.35 materials 11. Moving materials 500,000 Distance moved 0.50 0.50 12. Paying suppliers 30,000 Number of invoices 0.30 0.70…
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デジタル形式で段階的に解決ありがとう!! SOLVE STEP BY STEP IN DIGITAL FORMAT 4-Determine the payback period for the general distribution company s de rl de cv, The first machine requires an initial investment of $14,000 and will generate annual cash receipts after taxes of $3,000.00, 4,900.00, 1,500.00, 5,450.00, 800.00, 2,490.00, over the next 6 years. The second machine requires an initial investment of $21,000 and will provide an annual after-tax cash inflow of $4,000, 5,000.00, 6,000.00, 1,200.00, 1,100.00, 2,800.00, 3,600.00 for 7 years. a) Determine the payback period for each machine. b) Comment on whether the acquisition of the machines is acceptable, assuming that they are independent projects. c) Which machine should the company accept? Because?
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Dallas National Bank had the following activities, traceable costs, and physical flow of driver units: Activities Traceable Costs Physical flow of Driver Units Open new accounts $50,000 1,000 accounts Process deposits 36,000 400,000 deposits Process withdrawals 15,000 200,000 withdrawals Process loan applications 27,000 900 applications The above activities are used by the Memorial branch and the University branch: Memorial University New accounts 200 400 Deposits 40,000 20,000 Withdrawals 15,000 18,000 Loan applications 100 160 Refer to Dallas National Bank. What is the cost per driver unit for new account activity? Select one: a. $30.00 b. $0.075 c. $50.00 d. $0.09 PreviousSave AnswersNext

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