ACCT.PRINCIPLES-WILEYPLUS NEXTGEN
ACCT.PRINCIPLES-WILEYPLUS NEXTGEN
14th Edition
ISBN: 9781119709954
Author: Weygandt
Publisher: WILEY
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Chapter 25, Problem 16E

a

To determine

Introduction:

The responsibility report prepared by the management determines the contribution margin and controllable margin. Here, the contribution margin is computed by subtracting variable costs from revenue, and the controllable margin is computed by subtracting controllable fixed costs from the contribution margin.

To prepare: The responsibility report.

b

To determine

Introduction:

ROI is the formula for determining the percentage of return to be earned from a particular operation. Investors use this formula to evaluate the profitability of their investments.

To calculate: The ROI.

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