MANAGERIAL ACCOUNTING F/MGRS.
MANAGERIAL ACCOUNTING F/MGRS.
5th Edition
ISBN: 9781259969485
Author: Noreen
Publisher: RENT MCG
Question
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Chapter 11, Problem 11.18P

1.

To determine

Compute the office products division’s ROI of the year.

Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.

2.

To determine

Compute the office products division’s ROI of the new product line.

Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.

3.

To determine

Compute the office products division’s ROI of the next year assuming it performs the same as this year and adds the new product line.

Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.

4.

To determine

Reason to accept or reject product line.

Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.

5.

To determine

Reason for adding the new product line in office product division.

Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.

6.

To determine

Evaluate the performance by using residual income with minimum required rate of return being 12%.

Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.

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Sandhill Company received the following selected information from its pension plan trustee concerning the operation of the company's defined benefit pension plan for the year ended December 31, 2025.                                                                           January 1, 2025                          December 31, 2025 Projected benefit obligation                                   $1,517,000                                    $1,545,000 Market-related and fair value of plan assets          784,000                                          1,107,400 Accumulated benefit obligation                             1,568,000                                        1,689,300 Accumulated OCI (G/L)-Net gain                                0                                                 (201,700) The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service cost was $121,300. The company's actual…
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Crane Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about t                                                                    January 1, 2025                  December 31, 2025 Vested benefit obligation                               $1,560                                $2,010 Accumulated benefit obligation                      2,010                                 2,820 Projected benefit obligation                           2,260                                 3,630 Plan assets (fair value)                                    1,540                                  2,560 Settlement rate and expect rate of return                                                  10% Pension asset/liability                                       720                                        ?   Service cost for the year 2025 $400 Contributions (funding in 2025) 730 Benefits paid in 2025  200 (a)Compute the actual return on the plan assets in…
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