Ayayai Company manufactures a variety of tools and industrial equipment. The company operates through three divisions....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Ayayai Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2022, and relevant budget data are as follows. Sales Variable cost of goods sold Variable selling and administrative expenses Controllable fixed cost of goods sold Controllable fixed selling and administrative expenses Actual $1,399,000 670,000 124,000 169,000 79,000 Comparison with Budget $100,000 favorable 54,000 unfavorable 24,000 unfavorable On target On target Average operating assets for the year for the Home Division were $2,000,000, which was also the budgeted amount. Compute the expected ROI in 2022 for the Home Division, assuming the following independent changes to actual data. (Round ROI to 2 decimal places, e.g. 1.57%.) (1) (2) (3) Variable selling and administrative expenses are decreased by 6%. Average operating assets are decreased by 12.5%. Sales are increased by $199,000, and this increase is expected to increase contribution margin by $84,000. The expected ROI % % % Ayayai Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2022, and relevant budget data are as follows. Sales Variable cost of goods sold Variable selling and administrative expenses Controllable fixed cost of goods sold Controllable fixed selling and administrative expenses Actual $1,399,000 670,000 124,000 169,000 79,000 Comparison with Budget $100,000 favorable 54,000 unfavorable 24,000 unfavorable On target On target Average operating assets for the year for the Home Division were $2,000,000, which was also the budgeted amount. Compute the expected ROI in 2022 for the Home Division, assuming the following independent changes to actual data. (Round ROI to 2 decimal places, e.g. 1.57%.) (1) (2) (3) Variable selling and administrative expenses are decreased by 6%. Average operating assets are decreased by 12.5%. Sales are increased by $199,000, and this increase is expected to increase contribution margin by $84,000. The expected ROI % % %
Expert Answer:
Related Book For
Accounting Tools for business decision making
ISBN: 978-0470095461
4th Edition
Authors: kimmel, weygandt, kieso
Posted Date:
Students also viewed these accounting questions
-
Optimus Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for...
-
Dinkle Manufacturing Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home...
-
Suppan Manufacturing Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home...
-
i) Starbucks launched its prepaid (debit) Starbucks Card in November 2001. The card, which holds between $5 and $500 can be used at any Starbucks location. Suppose Starbucks management wants to study...
-
Graph the profit function. Determine the coordinates of the maxi- mum point of the profit graph. At what price, p, is profit maximized? Round to the nearest cent. This will be the price at which one...
-
Dawson Handcrafted Furniture produces chairs and sofas. Each chair requires 20 ft of wood, 1 lb of foam rubber, and 2 yd2 of fabric. Each sofa requires 100 ft of wood, 50 lb of foam rubber, and 20...
-
Beaver Oil Corporation drilled its first successful well on Lease A in 2016. Data for Lease A as of 12/31/16 are as follows: REQUIRED: Compute amortization for 2016. Leasehold costs IDC of well...
-
a. Prepare the journal entry to record Tamasine Companys issuance of 5,000 shares of $100 par value 7% cumulative preferred stock for $ 102 cash per share. b. Assuming the facts in part 1, if...
-
Health Plan Comparison How much money Plan 1 Plan 2 will an individual Deductible $1000.00 $3,000.00 Office Visit cost $30.00 $0.00 Monthly Premium Individual $70.00 $35.00 Individual+Family...
-
7) The second financial statement to prepare is the statement of retained eamings. To determine the ending balance of retained earnings you need to start with the opening balance as reported in the...
-
Enter E FLERE BELLE FESTES Letter At Last IK Kater Your Best 1.6 Enter Your Weight Is As DE NER. FAR Wymi 23.07496 Ce Www Credit Correo F X AWAH B TV5 X009 5 5 Alle A2 Lee 5 QUESTION 4 20 Points...
-
. The input-output (Leontief) matrix A = [aj] for an economy based on tourism and mineral products is A [0.2 0.4 0.5 0.2 where tourism corresponds to subscript 1 and minerals corresponds to subscript...
-
ABC Company, Inc. has paid $800 to Franchise Tax Board on behalf of XYZ Company, Inc., which will be reimbursed by XYZ Company, Inc. The reimbursement has not been processed as of the current period....
-
How might health care administrators leverage information management and informatics to support organizational goals? In what ways can HIS data and information capabilities benefit public health...
-
Explain what public relations (PR) is and the different types of PR. What are some ways to handle a rumor? Put together a statement on behalf of the restaurant to the public. Select one traditional...
-
Facebook Business Manager helps business to manage all the meta-Assets at one place. As a Digital Marketer critically analyze the importance of using Meta Business tools. List down business solutions...
-
. Insistent Duct Cleaning Services ended its first month of operations on June 30 of the current year. Some of the unadjusted account balances are as follows: Debit Credit Cash $1,000 Accounts...
-
6 (a) Briefly develop a mathematical model of the behaviour of a copper-twisted pair cable (b) Derive the magnetic energy from: w given that: K + w, where the - - k symbols have their usual meaning...
-
In May 2012, the budget committee of Grand Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June. 1. Expected sales: June $500,000, July $600,000....
-
Gwyn Wallander is the new owner of Bennett Co. She has heard about internal control but is not clear about its importance for her business. Explain to Gwyn the four purposes of internal control, and...
-
On April 1, 2011, CMV Corp. issued $600,000, 8%, 5-year bonds at face value. The bonds were dated April 1, 2011, and pay interest annually on April 1. Financial statements are prepared annually on...
-
College Textbook Publishers Inc. has prepared income statements segmented by divisions, but management is still uncertain about actual performance. Financial information for May is given as follows:...
-
All Things Greek Inc. has three sales divisions. One of the key evaluation inputs for each division manager is the performance of his or her division based on division income. The division statements...
-
Six Flags Theme Parks Inc. operates theme parks in the United States, Mexico, and Europe. One of its first theme parks, Six Flags over Georgia, was built in the 1960s in Atlanta on a large tract of...
Study smarter with the SolutionInn App