Gletchen Cough Drops operates two divisions. The following information pertains to each division for 2018. Required a.
Question:
Gletchen Cough Drops operates two divisions. The following information pertains to each division for 2018.
Required
a. Compute each division's residual income.
b. Which division increased the company's profitability more?
Transcribed Image Text:
Divislon A DIvlslon B Sales Operating income Average operating assets Company's desired rate of return $480,000 $32,000 $200,000 10% $300,000 24,000 $160,000 10%
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (20 reviews)
a Division A Residual income 32000 10 x 200000 12000 ...View the full answer
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Survey of Accounting
ISBN: 978-1259631122
5th edition
Authors: Thomas Edmonds, Christopher Edmonds, Philip Olds, Frances McNair, Bor Yi Tsay
Question Posted:
Students also viewed these Managerial Accounting questions
-
The following information pertains to two competitors, Superior Inc. and Michigan Corp. Superior Inc. reported sales revenues of $1,610,000 and Michigan Corp. reported sales revenue of $3,365,000....
-
The following information pertains to Montague Corporation: Net income ............................................... $1,420,000 Average common equity ...................... $18,650,000 Preferred...
-
The following information pertains to Capital Corporation: Net income ............................................. $1,005,000 Average common equity ............................ $16,500,000 Preferred...
-
Let a = (123) (45) = S, and b = (23) (14) = S5, then aba is equal to (13) (25) (135) (24) (15) (23) (123) (45)
-
A stiff, straight, horizontal wire of length 25 cm and mass 20 g is supported by electrical contacts at its ends, but is otherwise free to move vertically upward. The wire is in a uniform, horizontal...
-
Caiman Distribution Partners is the Brazilian distribution company of a U.S. consumer products firm. Inflation in Brazil has made bidding and budgeting difficult for marketing managers trying to...
-
Modeling number of children. As part of a study on how children affect parents depression in old age, researchers fit a model for total number of children in a family (Social Science & Medicine, Jan....
-
McDonald Corp. reported the following on its comparative income statement: Prepare a horizontal analysis of revenues and gross profit both in dollar amounts and in percentages for 2017 and 2016. (in...
-
A five - year project has a net cash inflow of $ 2 0 K , $ 2 5 K , $ 3 0 K , $ 2 0 K , and $ 1 5 K in the next five years. The minimum required rate of return is 2 0 % , Based on the net present...
-
In the ledger you would use J1, J2, J3 etc. for the post reference number showing which journal and page number you got the information. Then you go back to the journal and fill in the account number...
-
Muskrat Medical Equipment Company makes a blood pressure measuring kit. Jason McCoy is the production manager. The production department's static budget and actual results for 2019 follow. Required...
-
The manager of the Cranston Division of Wynn Manufacturing Corporation is currently producing a 20 percent return on invested capital. Wynn's desired rate of return is 16 percent. The Cranston...
-
How does a materials purchase price variance differ from a materials price variance.
-
Use the following data to calculate the requested ratios for Tristar Transport and Logistic Services. Briefly analyse each answer. 1) Days accounts receivable. 2) Inventory turnover. 3) Debt/equity....
-
The following partial information is contained in the variance analysis received from the Western Plant of Eastlawn Company. All plants at Eastlawn apply overhead on the basis of direct labor-hours....
-
The Hudson Company is the sponsor of an IRS qualified defined benefit pension plan for a single employer. The pension plan calculates pension benefits based on factors like age, years of service, and...
-
Find the area enclosed by one loop of the four-leaved rose r = cos(20).
-
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production 65,000...
-
How can a decision tree be used in decision making?
-
Simplify the expression. Assume that all variables are positive. 23VI1 2 V44 8
-
Units of production data for the two departments of Atlantic Cable and Wire Company for August of the current fiscal year are as follows Each department uses the average cost method.a. Determine the...
-
The following information concerns production in the Finishing Department for March. The Finishing Department uses the average cost method. a. Determine the number of units in work in process...
-
The charges to Work in Process?Baking Department for a period as well as information concerning production are as follows. The Baking Department uses the average cost method, and all direct materials...
-
Justice Corporation Comparative Balance Sheet December 31, 2025 and 2024 2025 2024 Assets Current Assets: $ Cash and Cash Equivalents 2,254 $ 1,876 Justice Corporation reported the following...
-
The Fields Company has two manufacturing departments forming and painting. The company uses the FIFO method of process costing at the beginning of the month the forming department has 33.000 units in...
-
A comparative balance sheet for Lomax Company containing data for the last two years is as follows: Lomax Company Comparative Balance Sheet This Year Last Year $ 96,000 $ 70,000 640,000 672,500...
Study smarter with the SolutionInn App