Bruer Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting: Variable Fixed element.' Variable element element per per month per quest deep $ 0 $ 175 $ 0 $ 0 0 $ 182 $ 5,600 $ 17 $ 59 $ 2,700 $ 8 $ 0 Revenue Tour guide wages Vehicle expenses Administrative expenses $ In November, the company budgeted for 362 guests and 157 jeeps. The actual activity for the month was 380 guests and 146 jeeps. Required: Prepare a report showing the company's activity variances for November. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.) Planning Budget 362 157 Bruer Jeep Tours Activity Variances For the Month Ended November 30 Flexible Activity Budget Variances Guests 380 Jeeps 146 Revenue Expenses: Tour guide wages Vehicle expenses Administrative expenses Total expense Net operating income Exercise 11-10 Cost-Volume-Profit Analysis and Return on Investment (ROI) (LO11-1) Posters.com is a small Internet retailer of high-quality posters. The company has $720,000 in operating assets and fixed expenses of $169,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $5,400,000 per year. The company's contribution margin ratio is 10%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 10 cents. Required: 1. Complete the following table showing the relation between sales and return on investment (ROI. 2. What happens to the company's return on investment (ROI) as sales increase? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the following table showing the relation between sales and return on investment (ROI). (Round your percentage answers to 2 decimal places.) Sales Net Operating Average ROI Operating Income Assets % $ 4,900,000 $ 321,000 $ 720,000 % S $ 720,000 5,000,000 $ $ 5,100,000 720,000 S $ 5,200,000 720,000 % 5,300,000 $ 720,000 S $ 720,000 % 5,400,000 % S Required 2 > Holton Company makes three products in a single facility. Data concerning these products follow. Selling price per unit Direct materials Direct labor Variable manufacturing overhead Variable selling cost per unit Mixing minutes per unit Monthly demand in units Product B C $73.70 $73.60 $89.30 $32.10 $41.10 $53.70 $23.20 $13.30 $ 9.20 $ 4.40 $ 4.50 $ 4.30 $ 2.30 $ 3.30 $ 2.60 4.10 2.50 2.50 3,000 1,000 2,000 The mixing machines are potentially the constraint in the production facility. A total of 14,000 minutes are available per month on these machines. Direct labor is a variable cost in this company. Required: a. How many minutes of mixing machine time would be required to satisfy demand for all three products? b. How much of each product should be produced to maximize net operating income? c. Up to how much should the company be willing to pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity
