Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Chapter 24, Problem 2MAD

Panera Bread Company (PNRA) operates over 2,000 bakery-cafe locations throughout the United States and Canada and serves over 9 million customers per week. Panera’s operations are divided into the following segments:

  • Company-Operated Bakery-Cafes
  • Franchised Bakery-Cafes
  • Fresh Dough and Other Products

The Fresh Dough and Other Products segment supplies fresh dough, produce, tuna, and other products to the company-operated and franchised cafes. Recent data (in millions) for each of these segments are as follows:

Chapter 24, Problem 2MAD, Panera Bread Company (PNRA) operates over 2,000 bakery-cafe locations throughout the United States , example  1

  1. a. Determine the profit margin for each segment. Round to one decimal place.
  2. b. Determine the investment turnover for each segment. Round to two decimal places.
  3. c. Use the DuPont formula to determine the return on investment for each segment. Round to one decimal place.
  4. d. Chapter 24, Problem 2MAD, Panera Bread Company (PNRA) operates over 2,000 bakery-cafe locations throughout the United States , example  2Which segment has the highest profit margin, investment turnover, and return on investment? Explain why.
  5. e. Chapter 24, Problem 2MAD, Panera Bread Company (PNRA) operates over 2,000 bakery-cafe locations throughout the United States , example  3If franchised cafes are more profitable, why would Panera operate company- owned cafes?
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Analyze Panera Bread Company Panera Bread Company (PNRA) operates over 2,000 bakery-cafe locations throughout the United States and Canada and serves over 9 million customers per week. Panera’s operations are divided into the following segments: Company-Operated Bakery-Cafes Franchised Bakery-Cafes Fresh Dough and Other Products The Fresh Dough and Other Products segment supplies fresh dough, produce, tuna, and other products to the company-operated and franchised cafes. Recent data (in millions) for each of these segments are as follows:   Company-Operated Cafes Franchised Cafes Fresh Dough Revenues $2,434   $155   $408   Operating income 398   150   28   Invested assets 943   18   87   a. Determine the profit margin for each segment. Round to one decimal place.   Profit margin Company-Operated fill in the blank 1%   Franchised fill in the blank 2%   Fresh Dough fill in the blank 3%   b. Determine the investment turnover for each segment. Round to two decimal…
Darden Restaurants, Inc. (DRI) is the largest full-service restaurant company in the world. It operates over 2,200 restaurants under a variety of brand names, including Olive Garden, Bahama Breeze, and LongHom Steakhouse. Panera Bread Company (PNRA) operates over 1,800 bakery-cafe locations across North America. It is one of the Largest fcxxl service companies in the United States. The cost of food, beverage, and packaging and the beginning and ending inventory balances from recent annual reports for Darden and Panera are as follows (in millions): a. Compute the inventory turnover for both companies. Round calculations to one decimal place.b. Compute the number of days' sales in inventory for Ixith companies. Round calculations to one decimal place.C. Which company is more efficient in managing inventory?d. What might explain the difference in the inventory management efficiency of the two companies?
Swifty Company makes various electronic products. The company is divided into a number of autonomous divisions that can either sell to internal units or sell externally. All divisions are located in buildings on the same piece of property. The Board Division has offered the Chip Division $22 per unit to supply it with chips for 45,000 boards. It has been purchasing these chips for $23 per unit from outside suppliers. The Chip Division receives $25.40 per unit for sales made to outside customers on this type of chip. The variable cost of chips sold externally by the Chip Division is $14.40. It estimates that it will save $6.40 per chip of selling expenses on units sold internally to the Board Division. The Chip Division has no excess capacity. (a) Calculate the minimum transfer price that the Chip Division should accept. (Round answers to 0 decimal places. e.g. 10.) Minimum transfer price $ Should Chip Division accept the offer? 19 (b) Suppose that the Chip Division decides to reject…

Chapter 24 Solutions

Financial And Managerial Accounting

Ch. 24 - Budgetary performance for cost center Vinton...Ch. 24 - Support department allocations The centralized...Ch. 24 - Prob. 3BECh. 24 - Profit margin, investment turnover, and ROI Briggs...Ch. 24 - Residual income Obj. The Commercial Division of...Ch. 24 - Transfer pricing The materials used by the...Ch. 24 - Budget performance reports for cost centers...Ch. 24 - The following data were summarized from the...Ch. 24 - Prob. 3ECh. 24 - Prob. 4ECh. 24 - Service department charges In divisional income...Ch. 24 - Varney Corporation, a manufacturer of electronics...Ch. 24 - Horton Technology has two divisions, Consumer and...Ch. 24 - Rocky Mountain Airlines Inc. has two divisions...Ch. 24 - Championship Sports Inc. operates two divisionsthe...Ch. 24 - The operating income and the amount of invested...Ch. 24 - The operating income and the amount of invested...Ch. 24 - Prob. 12ECh. 24 - The condensed income statement for the Consumer...Ch. 24 - Prob. 14ECh. 24 - Data are presented in the following table of...Ch. 24 - Prob. 16ECh. 24 - Materials used by the Instrument Division of...Ch. 24 - Prob. 18ECh. 24 - GHT Tech Inc. sells electronics over the Internet....Ch. 24 - Profit center responsibility reporting for a...Ch. 24 - Divisional income statements and return on...Ch. 24 - Effect of proposals on divisional performance A...Ch. 24 - Divisional performance analysis and evaluation The...Ch. 24 - Prob. 6PACh. 24 - Budget performance report for a cost center The...Ch. 24 - Profit center responsibility reporting for a...Ch. 24 - Divisional income statements and return on...Ch. 24 - Effect of proposals on divisional performance A...Ch. 24 - Prob. 5PBCh. 24 - Prob. 6PBCh. 24 - Kelly Kitchens operates both franchised and...Ch. 24 - Panera Bread Company (PNRA) operates over 2,000...Ch. 24 - Papa Johns International, Inc. (PZZA), operates...Ch. 24 - Panera Bread Company (PNRA) operates over 2,000...Ch. 24 - McDonalds Corporation (MCD) operates company-owned...Ch. 24 - Prob. 1TIFCh. 24 - Prob. 2TIFCh. 24 - Communication The Norse Division of Gridiron...Ch. 24 - The three divisions of Yummy Foods are Snack...Ch. 24 - Last Resort Industries Inc. is a privately held...Ch. 24 - Sara Bellows, manager of the telecommunication...Ch. 24 - Most firms allocate corporate and other support...Ch. 24 - Prob. 3CMACh. 24 - Prob. 4CMA
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