Consider the following condensed financial statements of Secure Life, Inc. The company's target rate of return is 10% Click the icon to view the comparative balance sheet.) Click the icon to view the income statement.) Read the requirements Requirement 1. Calculate the company's ROI. Round all of your answers to four decimal places Begin by selecting the formula to calculate return on investment (ROI), and then enter the amounts to calculate the company's ROI. (Round your calculations to four decimal places and enter your final to the nearest hundredth of a percent, XXX%) ROI Requirement 2. Calculate the company's profit margin ratio. Interpret your results. Begin by selecting the formula to calculate profit margin ratio, and then enter the amounts to calculate the company's profit margin ratio. (Enter your final to the nearest hundredth of a percent, X.XX%) Profit margin ratio % The company's profit margin ratio tells us that they cam of I for every dollar of Requirement 3. Calculate the company's asset tumover ratio. Interpret your results. Begin by selecting the formula to calculate asset turnover ratio, and then enter the amounts to calculate the company's asset turnover ratio. Asset turnover ratio The company's asset turnover ratio explains how efficiently a company uses its The company in generating of to generate with every $1.00 of Requirement 4. Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results. First, select the expanded ROI formula, ROI Using the expanded formula, the ROI for Secure Life, Inc. is To determine what is driving a company's Rol, management often restates the ROI equation in its expanded form. The Roi calculated with the expanded formula with the ROI calculated in Requirement 1. Requirement 5. Calculate the company's R1. Interpret your results. First, select the formula to calculate residual income (RI). RI The RI for Secure Life, Inc. is Secure Life, Inc. is management's target rate of return The Greco Company is decentralized, and divisions are considered investment (Click the icon to view additional information.) centers. Greco has one division that manufactures oak dining room chairs with upholstered seat cushions. The Chair Division cuts, assembles, and finishes tho Read the requirements. oak chairs and then purchases and attaches the seat cushions. Total contribution margin Requirement 1. Determine the total contribution margin for Greco Company for the quarter. Number of units Contribution margin per unit Chair Division Cushion Division Total Requirement 2. Assume the Chair Division purchases the 800 cushions needed from the Cushion Division at its current sales price. What is the total contribution margin for each division and the company? Number of units Contribution margin per unit Total contribution margin Chair Division Cushion Division Total Requirement 3. Assume the Chair Division purchases the 800 cushions needed from the Cushion Division at its current variable cost. What is the total contribution margin for each division and the company? (Enter "O" for any zero amounts.) Number of units Contribution margin per unit = Total contribution margin Chair Division Cushion Division Total Requirement 4. Review your answers for Requirements 1, 2 and 3. What is the best option for Greco Company? The best option for Greco is By having the Chair Division purchase the cushions from an outside vendor, the company would generate in total contribution margin than if the division purchases cushions internally, Requirements. Assume the Cushion Division has capacity of 1,600 cushions per quarter and can continue to supply its outside customers with 800 cushions per quarter and also supply the Chair Division with 800 cushions per quarter. What transfer price should Greco Company set? Explain your reasoning. Using the transfer price you determined, calculate the total contribution margin for the quarter. Greco Company should set the transfer price at because the Chair Division would not be willing to pay more than Total contribution margin Using the transfer price you determined, calculate the total contribution margin for the quarter. Number of units Contribution margin per unit Chair Division Cushion Division-external Cushion Division--Internal x Total One subunit of Track Sports Company had the fatowing financial rebuts last month Click the icon to view the fruits) Read the recent Requirement 1. Complete the performance evaluation report for the subunit (Enter a variance for each account as positiva number and ect whether the variann is foverable or unfavorabi Enter the variance percent on a percentage founded to two decimal places, XXX) Actual Flexible Flexible Budget Variance Subunit Results Budget Variance For U Foru Nets Revenge 1477.000 $459.000 Variable Expenses 263,000 253,000 Contribution Margin $ 214.000 100.000 Traceable and Expenses 35,000 Divisional Segment Margin $ 170.000 100.000 Requirement 2. Based on the data presented and your knowledge of the company, what type of responsibility center is this ubunt? This perfomance report includes thermore, this subunit must be Requirement 3. Which terms should be investigated i part of management's decision criterio is to investigate al variances equal to or exceeding $4,000 and exceeding 10% both criteria must be met)? Management should investigate the following an out the noted in the wave the out hold on Requirement 4. Should only unfavorable variancan be investigated? Explan Managers should investigate Favorable expense variances Requirements. Is it possible that the variances are due to a higher than expected sales volume? Explan The twible budget various O to sales volume differences between budget and actus. Differences in sales volume are captured by the The flexible budget variance due to Requirement. Wil management place equal weight on each of the variances exceeding $4,000? Explain Management will because Requirement 7. Which balanced Scorecard perspective is being addressed through this parformance report? in your opinion, is this partormance report a lead oe a tag indicator? Explain The performance report addresses the perspective of the balanced Scorecard. performance mentres tend to be indicators. They typically Requirements. List ona kay performance Indicator for the three other balanced Scorecard perspectives. Make sure to indicate which perspective is being addressed by the Indicators you tist Complete the following table to identify one hay performance indicator for the three other balanced Scorecand perspectives Balanced Scorecard Key performance perspective Indicator Consider the following condensed financial statements of Secure Life, Inc. The company's target rate of return is 10% Click the icon to view the comparative balance sheet.) Click the icon to view the income statement.) Read the requirements Requirement 1. Calculate the company's ROI. Round all of your answers to four decimal places Begin by selecting the formula to calculate return on investment (ROI), and then enter the amounts to calculate the company's ROI. (Round your calculations to four decimal places and enter your final to the nearest hundredth of a percent, XXX%) ROI Requirement 2. Calculate the company's profit margin ratio. Interpret your results. Begin by selecting the formula to calculate profit margin ratio, and then enter the amounts to calculate the company's profit margin ratio. (Enter your final to the nearest hundredth of a percent, X.XX%) Profit margin ratio % The company's profit margin ratio tells us that they cam of I for every dollar of Requirement 3. Calculate the company's asset tumover ratio. Interpret your results. Begin by selecting the formula to calculate asset turnover ratio, and then enter the amounts to calculate the company's asset turnover ratio. Asset turnover ratio The company's asset turnover ratio explains how efficiently a company uses its The company in generating of to generate with every $1.00 of Requirement 4. Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results. First, select the expanded ROI formula, ROI Using the expanded formula, the ROI for Secure Life, Inc. is To determine what is driving a company's Rol, management often restates the ROI equation in its expanded form. The Roi calculated with the expanded formula with the ROI calculated in Requirement 1. Requirement 5. Calculate the company's R1. Interpret your results. First, select the formula to calculate residual income (RI). RI The RI for Secure Life, Inc. is Secure Life, Inc. is management's target rate of return The Greco Company is decentralized, and divisions are considered investment (Click the icon to view additional information.) centers. Greco has one division that manufactures oak dining room chairs with upholstered seat cushions. The Chair Division cuts, assembles, and finishes tho Read the requirements. oak chairs and then purchases and attaches the seat cushions. Total contribution margin Requirement 1. Determine the total contribution margin for Greco Company for the quarter. Number of units Contribution margin per unit Chair Division Cushion Division Total Requirement 2. Assume the Chair Division purchases the 800 cushions needed from the Cushion Division at its current sales price. What is the total contribution margin for each division and the company? Number of units Contribution margin per unit Total contribution margin Chair Division Cushion Division Total Requirement 3. Assume the Chair Division purchases the 800 cushions needed from the Cushion Division at its current variable cost. What is the total contribution margin for each division and the company? (Enter "O" for any zero amounts.) Number of units Contribution margin per unit = Total contribution margin Chair Division Cushion Division Total Requirement 4. Review your answers for Requirements 1, 2 and 3. What is the best option for Greco Company? The best option for Greco is By having the Chair Division purchase the cushions from an outside vendor, the company would generate in total contribution margin than if the division purchases cushions internally, Requirements. Assume the Cushion Division has capacity of 1,600 cushions per quarter and can continue to supply its outside customers with 800 cushions per quarter and also supply the Chair Division with 800 cushions per quarter. What transfer price should Greco Company set? Explain your reasoning. Using the transfer price you determined, calculate the total contribution margin for the quarter. Greco Company should set the transfer price at because the Chair Division would not be willing to pay more than Total contribution margin Using the transfer price you determined, calculate the total contribution margin for the quarter. Number of units Contribution margin per unit Chair Division Cushion Division-external Cushion Division--Internal x Total One subunit of Track Sports Company had the fatowing financial rebuts last month Click the icon to view the fruits) Read the recent Requirement 1. Complete the performance evaluation report for the subunit (Enter a variance for each account as positiva number and ect whether the variann is foverable or unfavorabi Enter the variance percent on a percentage founded to two decimal places, XXX) Actual Flexible Flexible Budget Variance Subunit Results Budget Variance For U Foru Nets Revenge 1477.000 $459.000 Variable Expenses 263,000 253,000 Contribution Margin $ 214.000 100.000 Traceable and Expenses 35,000 Divisional Segment Margin $ 170.000 100.000 Requirement 2. Based on the data presented and your knowledge of the company, what type of responsibility center is this ubunt? This perfomance report includes thermore, this subunit must be Requirement 3. Which terms should be investigated i part of management's decision criterio is to investigate al variances equal to or exceeding $4,000 and exceeding 10% both criteria must be met)? Management should investigate the following an out the noted in the wave the out hold on Requirement 4. Should only unfavorable variancan be investigated? Explan Managers should investigate Favorable expense variances Requirements. Is it possible that the variances are due to a higher than expected sales volume? Explan The twible budget various O to sales volume differences between budget and actus. Differences in sales volume are captured by the The flexible budget variance due to Requirement. Wil management place equal weight on each of the variances exceeding $4,000? Explain Management will because Requirement 7. Which balanced Scorecard perspective is being addressed through this parformance report? in your opinion, is this partormance report a lead oe a tag indicator? Explain The performance report addresses the perspective of the balanced Scorecard. performance mentres tend to be indicators. They typically Requirements. List ona kay performance Indicator for the three other balanced Scorecard perspectives. Make sure to indicate which perspective is being addressed by the Indicators you tist Complete the following table to identify one hay performance indicator for the three other balanced Scorecand perspectives Balanced Scorecard Key performance perspective Indicator