er Term B) AC 306-8 > Assignments > Unit 6 Assignment - Managerial Reporting Unit 6 Assignment - Man- agerial Reporting Submit Assignment Due Sunday by 11:59pm Points 80 Submitting a file upload Instructions Variable costing is a costing system where we consider taking on additional work to help fill our production capacity. Variable costing is used for short term decisions and excludes fixed overhead costs. In this assignment, we will explore how variable costing can help us determine how to select special orders. Download the AC 306 Unit 6 Assignment template a [Excel] and complete the problems on each tab. In this assignment Problem 1 - Absorption vs variable costing Problem 2 - ROI and Residual income Problem 3 - Calculating Cost of Goods Sold Assignment Objectives Demonstrate Describe managerial and internal uses of cost accounting data. Deliverables When you have finished, rename the file using your first initial, last name. course number and assignment number (for example UDoc_AC306 A6.xlsx) Financial performance measures profit margin Return on investment = net income = net income ave assets sales inv turnover inv center sales ave assets Residual Income = net income-target income INSTRUCTIONS: Enter numbers in blue cells Enter formulas in the yellow cells Enter your narrative analysis in the green cells 1. Compute the return on Assets for each division below Investment Center Sales Net income Ave assets Return on Investment 41,250,000 $4,550,000 $22,500,000 Coffee/Expresso machine Coffee machine w/ grinder Basic Coffee maker 16,975,000 10,400,000 $1,975,000 875,000 10,950,000 7,500,000 2. Assume a target income of 12% of average invested assets. Compute the residual income for each division Coffee machine Coffee/Expresso marina Problem 3 Basic Coffee maker sarlarindar Problem 1 Problem 2 Ready Paste E35 Calor (Bay) 16 A- A = = = B IULOASE fx Eto Wrap Text Mergo & Contor General $ % ) Conditional Format Formatting as Table Cell Styles x H 18 2. Assume a target income of 12% of average invested assets. Compute the residual income for each division Coffee/Expresso machine Coffee machine w/ grinder Basic Coffee maker 12% Net Income Less target net Income Residual Income Coffee/Expresso machine Coffee machine w/ grinder Basic Coffee maker Profit Margin Net income Sales Investment Turnover Inv ctr sales Ave assets ROI 3. If you were the Vice President over the Coffee Machine Division what is your analisis of the three products? Problem 1 Problem 2 Problem 3 + Ready 0