{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-27T01:12:55-04:00", "answer_date": "2024-05-27 01:12:55", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1770191", "url": "\/study-help\/questions\/case-6-the-camping-division-of-custer-company-is-operated-1770191", "question_creation_date_js": "2024-05-27T01:12:55-04:00", "question_creation_date": "May 27, 2024 01:12 AM", "meta_title": "[Solved] CASE 6 The Camping Division of Custer Com | SolutionInn", "meta_description": "Answer of - CASE 6 The Camping Division of Custer Company is operated as a profit center. Sales for the division were budgeted for | SolutionInn", "meta_keywords": "case,6,camping,division,custer,company,operated,profit,center,sales,budgeted,2020", "question_title_h1": " CASE 6 The Camping Division of Custer Company is operated as a profit center. Sales for the division were budgeted for 2020 at $700,000.", "question_title": " CASE 6 The Camping Division of Custer Company is operated as", "question_title_for_js_snippet": "CASE 6 The Camping Division of Custer Company is operated as a profit center Sales for the division were budgeted for 2020 at $700,000 The only variable costs budgeted for the division were cost of goods sold ($340,000) and selling and administrative expenses ($46,000) Fixed costs were budgeted at $77,000 for cost of goods sold, $70,000 for selling and administrative, and $69,000 for noncontrollable fixed costs Actual results for these items were Sales $678,000 Cost of goods sold Variable 315,000 Fixed 81,000 Selling and administrative Variable I 47,000 Fixed 51,000 Noncontrollable fixed 69,000 (a) Prepare a responsibility report for the Camping Division for 2020 (b) Assume the division is an investment center, and average operating assets were $1,000,000 The noncontrollable fixed costs are controllable at the investment center level Compute ROI (c) Upon further analysis, Custer Company determined that if it committed to a 12 month advertising campaign costing $18,000, they could increase budgeted sales by 25 Variable costs also will increase by 25 Fixed cost of goods sold would remain at $77,000 and selling and administrative expenses increases by the $18,000 cost of this contract to a total of $88,000 Noncontrollable fixed costs would remain at $69,000 This plan resulted in the following results Sales $873,000 Cost of goods sold Variable 420,000 Fixed 81,000 4", "question_description": "\"image\"image", "transcribed_text": "CASE 6 The Camping Division of Custer Company is operated as a profit center. Sales for the division were budgeted for 2020 at $700,000. The only variable costs budgeted for the division were cost of goods sold ($340,000) and selling and administrative expenses ($46,000). Fixed costs were budgeted at $77,000 for cost of goods sold, $70,000 for selling and administrative, and $69,000 for noncontrollable fixed costs. Actual results for these items were: Sales $678,000 Cost of goods sold Variable 315,000 Fixed 81,000 Selling and administrative Variable I 47,000 Fixed 51,000 Noncontrollable fixed 69,000 (a) Prepare a responsibility report for the Camping Division for 2020. (b) Assume the division is an investment center, and average operating assets were $1,000,000. The noncontrollable fixed costs are controllable at the investment center level. Compute ROI. (c) Upon further analysis, Custer Company determined that if it committed to a 12 month advertising campaign costing $18,000, they could increase budgeted sales by 25%. Variable costs also will increase by 25%. Fixed cost of goods sold would remain at $77,000 and selling and administrative expenses increases by the $18,000 cost of this contract to a total of $88,000. Noncontrollable fixed costs would remain at $69,000. This plan resulted in the following results: Sales $873,000 Cost of goods sold Variable 420,000 Fixed 81,000 4", "related_book": { "title": "Fundamental accounting principle", "isbn": "1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587", "edition": "21st edition", "authors": "John J. Wild, Ken W. Shaw, Barbara Chiappetta", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/267.jpg", "uri": "\/textbooks\/fundamental-accounting-principle-21st-edition-267", "see_more_uri": "" }, "free_related_book": { "isbn": "B003CULF5O", "uri": "\/textbooks\/owner-5177-mosquito-light-wire-hook-8-b003culf5o-142211", "name": "Owner 5177 Mosquito Light Wire Hook \u200e8", "edition": "" }, "question_posted": "2024-05-27 01:12:55", "see_more_questions_link": "\/study-help\/questions\/business-economics-2023-September-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/introduction-to-programming\/young-tableaux-suppose-you-have-an-nby-n-array-of-1279163", "description": "Young tableaux. Suppose you have an \\(n\\)-by- \\(n\\) array of integers a [] [] such that, for all \\(i\\) and \\(j, a[i][j] A two-dimensional array with this property is known as a Young tableaux. 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