Question;(TCO D) A company that has a profit can increase its return;on investment by;increasing sales revenue and operating;expenses by the same dollar amount.;increasing average operating assets and;operating expenses by the same dollar amount.;increasing sales revenue and operating;expenses by the same percentage.;decreasing average operating assets and sales;by the same percentage.;Question 2. Question;(TCO D) Given the following data, what would ROI be?;Sales $50,000;Net operating income $5,000;Contribution margin;$20,000;Average operating assets;$25,000;Stockholder's equity;$15,000;10%;20%;16.7%;Question 3. Question;(TCO D) Last year, the House of Orange had sales of;$826,650, net operating income of $81,000, and operating assets of $84,000 at;the beginning of the year and $90,000 at the end of the year. What was the;company's turnover, rounded to the nearest tenth?;9.5;10.2;9.8;TCO D) Seebach Corporation has two major business;segments?Apparel and Accessories. Data concerning those segments for June;appear below.;Sales revenues, Apparel;$700,000;Variable expenses, Apparel;$406,000;Traceable fixed expenses, Apparel;$98,000;Sales revenues, Accessories;$710,000;Variable expenses, Accessories;$312,000;Traceable fixed expenses, Accessories;$107,000;Common fixed expenses totaled $292,000 and were allocated as;follows: $155,000 to the Apparel business segment and $137,000 to the;Accessories business segment.;Required;Prepare a segmented income statement in the contribution;format for the company. Omit percentages, show only dollar amounts.;Question 2. Question;(TCO D) Eber Wares is a division of a major corporation. The;following data are for the latest year of operations.;Sales $30,000,000;Net Operating income $1,170,000;Average operating assets $8,000,000;The company's minimum required rate of return 18%;Required;i. What is the division's margin?;ii. What is the division's turnover?;iii. What is the division's ROI?;iv. What is the division's residual income?;Question 3. Question;(TCO D) Tjelmeland Corporation is considering dropping product;S85U. Data from the company's accounting system appear below.;Sales $360,000;Variable Expenses $158,000;Fixed Manufacturing Expenses $119,000;Fixed Selling and Administrative Expenses $94,000;All fixed expenses of the company are fully allocated to products;in the company's accounting system. Further investigation has revealed that;$55,000 of the fixed manufacturing expenses and $71,000 of the fixed selling;and administrative expenses are avoidable if product S85U is discontinued.;Required;i. According to the company's accounting system, what is the;net operating income earned by product S85U? Show your work!;ii. What would be the effect on the company's overall net;operating income of dropping product S85U? Should the product be dropped? Show;your work!;Question 4. Question;(TCO D) Part F77 is used in one of Wilcutt Corporation's;products. The company's Accounting Department reports the following costs of;producing the 7,000 units of the part that are needed every year.;Per Unit;Direct Materials $7.00;Direct Labor $6.00;Variable Overhead $5.60;Supervisor's Salary $4.70;Depreciation of Special Equipment $1.50;Allocated General Overhead $5.40;An outside supplier has offered to make the part and sell it;to the company for $28.30 each. If this offer is accepted, the supervisor's;salary and all of the variable costs, including direct labor, can be avoided.;The special equipment used to make the part was purchased many years ago and;has no salvage value or other use. The allocated general overhead represents;fixed costs of the entire company. If the outside supplier's offer were;accepted, only $9,000 of these allocated general overhead costs would be;avoided.;Required;i. Prepare a report that shows the effect on the company's;total net operating income of buying part F77 from the supplier rather than;continuing to make it inside the company.;ii. Which alternative should the company choose?;Question 5. Question;(TCO D) A customer has asked Clougherty Corporation to;supply 4,000 units of product M97, with some modifications, for $40.10 each.;The normal selling price of this product is $48.00 each. The normal unit;product cost of product M97 is computed as follows.;Direct Materials $18.50;Direct Labor $1.20;Variable manufacturing overhead $8.40;Fixed manufacturing;overhead $3.90;Unit product cost $32.00;Direct labor is a variable cost. The special order would;have no effect on the company's total fixed manufacturing overhead costs. The;customer would like some modifications made to product M97 that would increase;the variable costs by $5.70 per unit and that would require a one-time;investment of $31,000 in special molds that would have no salvage value. This special;order would have no effect on the company's other sales. The company has ample;spare capacity for producing the special order.;Required;Determine the effect on the company's total net operating;income of accepting the special order. Show your work!
Paper#44340 | Written in 18-Jul-2015Price : $28