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?
Q: Phelps Glass Incorporated has reported the following financial data: net revenues of $11.9 million,…
A: Calculation of Controllable Margin and CPC at Operating IncomeBased on the provided financial data,…
Q: Safari Equipment Company has several divisions that are investment centers. Data for the Boat…
A: Return on Assets = This ratio indicates how a company manages its assets to generate revenue for the…
Q: Which of the choices best describe the statements below? Statement 1 Department A has Oparating…
A: Responsibility Accounting The objective of the responsibility accounting which is spread in all…
Q: Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for…
A: Contribution margin income statement displays contribution margin and net income. Segmented…
Q: Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a. The…
A: Contribution margin is calculated by subtracting the variable costs from sales. It provides the…
Q: Profit margin, investment turnover, and return on investment The condensed income statement for the…
A: RETURN ON INVESTMENTReturn on investment is one of the profitability ratios which shows how much…
Q: Consolidated Industries is a diversified manufacturer with business units organized as divisions,…
A: Contribution margin = Sales - cost of goods sold - variable selling expenses =…
Q: Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses as…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: Losses have been incurred at Millard Corporation for some time. In an effort to isolate the problem…
A: Variable costing: This is a costing method that includes variable manufacturing costs to compute the…
Q: b. Compute the total increase in income if the departments with sales less than avoidable costs, as…
A: Avoidable costs The cost which can be avoided and will not be incurred in case of a particular…
Q: Suppose Grainy Day is considering discontinuing its tasty loops product line. Assume that during the…
A: Variable FixedCost of goods sold $ 38,40,000.00 $ 25,60,000.00 $ 64,00,000.00Operating…
Q: Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for…
A: Income Statement -An income statement is a type of financial report that lists a company's total…
Q: Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for…
A: A financial statement type that divides costs into variable and fixed components is the contribution…
Q: Ayayai Inc. operates the Patio Furniture Division as a profit center. Operating data for this…
A: The responsibility report only includes those costs that can be affected by the decision of the…
Q: Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses as…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: Whitman Company has just completed its first year of operations. The company's absorption costing…
A: Disclaimer: "Since you have asked multiple questions, we will solve the first question for you. If…
Q: Why?
A: Definition of Return on Assets: Return on Assets (ROA) is a financial metric used to evaluate how…
Q: Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses as…
A: A Segmented Contribution Margin Income Statement provides a breakdown of the contribution margin for…
Q: Profit Margin, Investment Turnover, and return on investment The condensed income statement for the…
A:
Q: Required: 1. What was the actual operating income for the period? 2. What was the company's master…
A: Operating Income is calculated by subtracting variable cost and fixed cost from the sales…
Q: Profit Margin, Investment Turnover, and Return on Investment The condensed income statement for the…
A: According to Dupont formula, Return on Investment = Profit margin * Asset Turnover
Q: Profit Margin, Investment Turnover, and Return on Investment The condensed income statement for the…
A: Formulae used: Profit margin=Operating income Sales×100Investment turnover=SalesTotal…
Q: The condensed income statement for Monroe Corp. for the past year is as follows: Product В C Sales…
A: If product B is discontinued then Total Fixed costs will be allocated to product "C" Because Fixed…
Q: A family friend has asked your help in ndustry. Supply the missing data in th ntermediate…
A: Return on investment is calculated by dividing net operating income by average operating assets.…
Q: Profit Margin, Investment Turnover, and return on investment The condensed income statement for the…
A: DuPont system: It analysis the organization's ability to increase its return on equity.
Q: Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for…
A:
Q: Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses as…
A: The contribution income statement provides a valuable tool for analyzing the profitability of a…
Q: Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for…
A: Contribution margin means the difference between the selling price and variable cost. Break even…
Q: Dacker Products is a division of a major corporation. The following data are for the most recent…
A: The objective of this question is to calculate the residual income of Dacker Products, a division of…
Q: Dacker Products is a division of a major corporation. The following data are for the most recent…
A: We can calculate the division's margin that is use to compute ROI using the formula for margin, we…
Q: Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products…
A: Income statement: Income statement is the financial statement which shows the financial performace…
Q: RJM Enterprises is a manufacturer of consumer electronics products. The industry is very…
A: variance analysis refers to the tool which is used to determine the difference between the standard…
Q: Profit margin, investment turnover, and return on investment The condensed income statement for the…
A: The total amount paid by your organization as a cost directly related to the sale of products is…
Q: Based on the data in problem 24- 4 above, assume that management has established a 10% minimum…
A: Residual income = Actual net operating income - Minimum required rate of return We know that the…
Q: Neelon Corporation has two divisions: Southern Division and Northern Division. The following data…
A: The cost–volume–profit analysis is conducted according to certain assumptions. These assumptions are…
Q: Consolidated Industries is a diversified manufacturer with business units organized as divisions,…
A: Income statement is a financial statement that shows profitability, total revenue and total expenses…
Q: Safari Equipment Company has several divisions that are investment centers. Data for the Boat…
A: Operating Return On Assets = Operating Income/Average Total Assets
Step by step
Solved in 2 steps
- A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: (Loss amounts should be indicated by a minus sign. Do not round your intermediate calculations.) Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return: Percentage Dollar amount Residual income $ $ Company A 420,000 151,000 17% 12 % $ $ $ Company B 760,000 35,000 T 18 % 47,000 % $ $ $ Company C 650,000 153,000 % 9% 6,000Bovine Company, a wholesale distributor of umbrellas, has been experiencing losses for some time, as shown by its most recent monthly contribution format Income statement: In an effort to isolate the problem, the president has asked for an income statement segmented by geographic market. Accordingly, the Accounting Department has developed the following: Required: Prepare a contribution format Income statement segmented by geographic market, as requested by the president. 2-a. The company's sales manager believes that sales in the Central geographic market could be increased by 15% If monthly advertising is increased by $42, 000. Calculate the incremental net operating income. 2- b. Would you recommend the increased advertising?Check m Bovine Company, a wholesale distributor of umbrellas, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales Variable expenses Contribution margin Fixed expenses $2,050,000 876,050 1,173,950 1,315,000 $ (141,050) Operating loss In an effort to isolate the problem, the president has asked for an income statement segmented by geographic market. Accordingly, the Accounting Department has developed the following: Geographic Market Central South North Sales Variable expenses as a percentage of sales Traceable fixed expenses $605,000 $804,000 $641,000 34% $315,000 $500,000 $305,000 53% 44% Required: 1. Prepare a contribution format income statement segmented by geographic market, as requested by the president Geographic Market Total South Central North Company
- Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales $540,000 Cost of goods sold 243,000 Gross profit $297,000 Administrative expenses 135,000 Income from operations $162,000 The manager of the Consumer Products Division is considering ways to increase the return on investment. a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that $1,350,000 of assets have been invested in the Consumer Products Division. Round the investment turnover to one decimal place. Profit margin fill in the blank 1 % Investment turnover fill in the blank 2 Rate of return on investment fill in the blank 3 % b. If expenses could be reduced by $27,000 without decreasing sales, what would be the impact on the…Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Sales Variable expenses as a percentage of sales Traceable fixed expenses $ 1,546,000 670, 180 875,820 963,000 $ (87,180) Req 1 Req 2A East $ 386,000 58% $ 251,000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $26,000 based on the belief that it would increase that division's sales by 14%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease)…Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Sales Net operating income Average operating assets Division Osaka $ 10,100,000 $ 808,000 $ 2,525,000 Yokohama $ 31,000,000 $ 3,100,000 $ 15,500,000 Required: 1. For each division, compute the return on investment (ROI). 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 17%. Compute the residual income for each division.
- Profit Margin, Investment Turnover, and Return on Investment The condensed income statement for the Consumer Products Division of Tri-State Industries Inc. is as follows (assuming no support department allocations): Sales $508,000 Cost of goods sold (228,600) Gross profit $279,400 Administrative expenses (127,000) Operating income $152,400 The manager of the Consumer Products Division is considering ways to increase the return on investment. a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that $1,270,000 of assets have been invested in the Consumer Products Division. Round the investment turnover to one decimal place. Profit margin fill in the blank 1 % Investment turnover fill in the blank 2 Return on investment fill in the blank 3 % b. If expenses could be reduced by $25,400 without decreasing sales, what would be the impact on the…Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales $1,476,000 Cost of goods sold 664,200 Gross profit $811,800 Administrative expenses 295,200 Income from operations $516,600 The manager of the Consumer Products Division is considering ways to increase the return on investment. a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that $2,460,000 of assets have been invested in the Consumer Products Division. Round the investment turnover to one decimal place. Profit margin fill in the blank 1 % Investment turnover fill in the blank 2 Rate of return on investment fill in the blank 3 % b. If expenses could be reduced by $73,800 without decreasing sales, what would be the impact on the…Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales $ 1,644,000 Variable expenses 608,620 Contribution margin 1,035,380 Fixed expenses 1,139,000 Net operating income (loss) $ (103,620) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Division East Central West Sales $ 444,000 $ 650,000 $ 550,000 Variable expenses as a percentage of sales 48% 27% 40% Traceable fixed expenses $ 282,000 $ 335,000 $ 200,000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $20,000 based on the belief that it would increase that division's sales by 14%. Assuming…
- Please help meProfit Margin, Investment Turnover, and Return on Investment The condensed income statement for the Consumer Products Division of Tri-State Industries Inc. is as follows (assuming no support department allocations): Sales $1,980,000 Cost of goods sold (891,000) Gross profit $1,089,000 Administrative expenses (594,000) Operating income $495,000 The manager of the Consumer Products Division is considering ways to increase the return on investment. a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that $3,300,000 of assets have been invested in the Consumer Products Division. Round the investment turnover to one decimal place. Profit margin fill in the blank 1 % Investment turnover fill in the blank 2 Return on investment fill in the blank 3 % b. If expenses could be reduced by $99,000 without decreasing sales, what would be the impact on…Veronica Mars, a recent graduate of Bell’s accounting program, evaluated the operating performance of Dunn Company’s six divisions. Veronica made the following presentation to Dunn’s board of directors and suggested the Percy Division be eliminated. “If the Percy Division is eliminated,” she said, “our total profits would increase by $26,900.” The OtherFive Divisions PercyDivision Total Sales $1,665,000 $100,600 $1,765,600 Cost of goods sold 978,700 77,000 1,055,700 Gross profit 686,300 23,600 709,900 Operating expenses 527,200 50,500 577,700 Net income $159,100 $ (26,900 ) $132,200 In the Percy Division, cost of goods sold is $59,200 variable and $17,800 fixed, and operating expenses are $31,600 variable and $18,900 fixed. None of the Percy Division’s fixed costs will be eliminated if the division is discontinued.Is Veronica right about eliminating the Percy Division? Prepare a schedule to support your…
