Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Determine margin, turnover, and return on investment for a segment and the effect on each when the variables are changed This is for a review
Determine margin, turnover, and return on investment for a segment and the effect on each when the variables are changed
This is for a review im doing, if you could show your work I would appreciate it. Im going to be using this to check against the work im doing, and I want to know how to fix something if i get it wrong. If you could make it easy to determine what answer goes where i woudl appreciate it. Thank you!
Question 10: Determine margin, turnover, and return on investment for a segment and the effect on each when the variables are changed The manager of the Winston Company faced the following data for the year 2015: Contribution to indirect expenses 2.500.000 Assets directly used by and identified with the segment 25.000.000 Sales 20.000.000 Required: Determine the effect on margin, turnover, and return on investment of the segment in 2015 if each of the following changes were to occur. Consider each change separately and assume that any items not specifically mentioned remain the same as in 2015. (1) Certain nonproductive assets were eliminated. As a result, investment decreased by $1,000,000 and expenses increased by $100,000. Round each answer to two decimal places a. Margin: b. Turnover c. Return on Investment: (2) An advertising campaign resulted in increasing sales by S3,500,000, cost of goods sold by $3,000,000, and advertising expense by $600,000. Round each answer to two decimal places a. Margin: b. Turnover c. Return on Investment: (3) An investment was made in productive assets costing $700,000. As a result, sales increased by $400,000, and expenses increased by $150,000. Round each answer to two decimal places. a. Margin: b. Turnover c. Return on InvestmentStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started