Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil eld in Alaska. Data concerning the most recent year appear below: 5 points Sales 3 17, 200, 000 Net operating income 3 4, 700, 000 Average operating assets 3 35, 200, 000 ' eglk Required: 1. Compute the margin for Alyeska Services Company. (Round your answer to 2 decimal places.) @ 2. Compute the turnover for Alyeska Services Company. (Round your answer to 2 decimal places.) Him 3. Compute the return on investment (ROI) for Alyeska Services Company. (Round your Intermediate calculatlons and final answer to 2 declmal places.) 1. Margin 2. Turnover 3. ROI References Next ) % Prev 1 of 7 Check my work Juniper Design Ltd. of Manchester, England. is a company specializing in providing design services to residential developers. Last year the company had net operating income of $480,000 on sales of $1,400,000. The company's average operating assets for the year were $1,600,000 and its minimum required rate of return was 11%. mm\" Required: Compute the company's residual income for the year. 5' :| eBook Hint E Print E References M 3ng ( Prev 2 of 7 EH Next > . 3 Financial data for Joel de Paris. Inc. for last year follow: Joel de Paris, Inc. Balance Sheet 7 Beginning Ending points Balance Balance Assets Cash 5 131.000 $ 133.000 Accounts receivable 349,000 401.000 El Inventory 567,000 477,000 7 Plant and equipment, net 303,000 799,000 95\" Investment in Buisson. S.A. 397.000 430.000 Land (undeveloped) 245 000 253 000 g Total assets 32.496.000 $2,573,000 an Liabilities and Stockholders' Equity Accounts payable 3 355,000 $ 331.000 Longterm debt 1,006,000 1,006,000 Stockholders' equity 1 105 000 1 236 000 Refe'ences Total liabilities and stockholders' equity $2,496,000 51.573.053 Joel de Paris, Inc. Income Statement Sales $4,575,000 Operating expenses 4 067,250 Net operating income 607,750 Interest and taxes: Interest expense $112,000 Tax expense 205.000 317.000 Net income 3 290.750 , The company paid dividends of $159,750 last year The \"Investment In Bulsson, 5A..\" on the balance sheet represents an Investment In the stock of another company. The company's minimum required rate of return of15%. Required: 1. Compute the company's average operating assets for last year: 2. Compute the company's margin, turnover, and return on investment (ROI) for last year. (Do not round intermediate calculations and round your final answers to 2 decimal places.) 3. What was the company's residual income last year? Average operating assets 2. Margin IV. Turnover ROI 3. Residual income ( Prev 3 of 7 Next > Check my work 4 The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: 10 Dirt Mountain Racing Total Bikes Bikes Bikes points Sales $922, 000 $264, 000 $ 401, 000 $ 257, 000 Variable manufacturing and selling 480 , 000 119, 000 206, 000 155, 000 expenses Contribution margin 442, 000 145, 000 195, 000 102, 000 Fixed expenses: eBook Advertising, traceable 69, 700 8, 700 40,500 20,500 Depreciation of special equipment 42,900 20, 100 7, 200 15, 600 Salaries of product-line managers 115, 500 40, 600 38, 100 36, 800 Allocated common fixed expenses* 184, 400 52, 800 80, 200 51, 400 Hint Total fixed expenses 412, 500 122, 200 166, 000 124, 300 Net operating income (loss) $ 29,500 $ 22, 800 $ 29, 000 $(22, 300) Print *Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not References the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? 2. Should the production and sale of racing bikes be discontinued? 3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? Mc Gra HillCheck my work 5 Troy Engines, Lid., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Lid., for a cost of $36 per unit. To evaluate this offer, Troy Engines, Lid., has gathered the following information relating to its 7 own cost of producing the carburetor internally: points 15, 000 Units Per per Unit Year eBook Direct materials 2 $ 180, 000 Direct labor 12 180, 000 Variable manufacturing overhead 4 60, 000 Fixed manufacturing overhead, traceable 6* 90, 000 Fixed manufacturing overhead, allocated 9 135, 000 Hint Total cost $ 43 $ 645, 000 Print *One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Required: . Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be References the financial advantage (disadvantage) of buying 15,000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased, Troy Engines, Lid., could use the freed capacity to launch a new product. The segment margin of the new product would be $150,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 15,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 15,000 carburetors from the outside supplier? Required 1 Required 2 > Mc HillCheck my work 6 Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $330,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: 8 points Quarterly Product Selling Price Output $16 .00 per pound 12, 200 pounds $10. 00 per pound 19, 100 pounds $22. 00 per gallon 3, 400 gallons Book Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Hint Additional Processing Selling Product Costs Price Print A $61, 390 $20.70 per pound $87, 645 $15.70 per pound $35, 300 $29. 70 per gallon References Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? 2. Based on your analysis in requirement 1, which product or products should be sold at the split-off point and which product or products should be processed further? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? Product A Product B Product C Financial advantage (disadvantage) of further processing Mc HillCheck my work 7 Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 102,000 units per year is: 8 points Direct materials $ 1. 70 Direct labor $2. 00 Variable manufacturing overhead $ 1.00 Fixed manufacturing overhead $ 4. 05 Variable selling and administrative expenses $ 2. 10 Fixed selling and administrative expenses $ 1. 00 Book The normal selling price is $19.00 per unit. The company's capacity is 122,400 units per year. An order has been received from a mail- Hint order house for 1,700 units at a special price of $16.00 per unit. This order would not affect regular sales or the company's total fixed costs. Required: Print 1. What is the financial advantage (disadvantage) of accepting the special order? 2. As a separate matter from the special order, assume the company's inventory includes 1,000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. The References company does not expect the selling of these inferior units to have any effect on the sales of its current model. What unit cost is relevant for establishing a minimum selling price for these units? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) of accepting the special order? Required 1 Required 2 > Mc Hill