Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fill in the blanks in the schedule below for two separate investment centers A and B. Investment Center Sales S? $ 12,100,000 Income $ 565,

image text in transcribed
image text in transcribed
Fill in the blanks in the schedule below for two separate investment centers A and B. Investment Center Sales S? $ 12,100,000 Income $ 565, 2ee $ Average assets $ 1,570,000 $ Profit margin X 7 Investment turnover 1.5 Return on investment PX 12% Use the information in the table above to compute each department's contribution to overhead (both in dollars and as a percent) (Round your final answers to 2 decimal places.) Profit Margin: Numerator: Denominator: Investment Center Income Sales 565 2005 7,065,000 8 $ 12,100,000 Profit Margin Profit margin 8001% Investment Tumover Trivestment Trnover Numerator: Investment Center Sales Denominator: Average assets = Investment tumover Pralit Margin: Numerator: Denominator: Profit Margin Investment Center income 1 Sales = Profit margin $ 565,200 / $ 7,065,000/= 8,00 % B $ 12,100,000/= % A Investment Turnover: Numerator: Denominator: - Investment Turnover = Investment turnover Investment Center Sales B $ Average assets $ 1,570,000 12,100,000/ 1.50 Return on investment: Numerator: 2 Denominator: Return on investment Investment Center Income A Average assets $ 565 200/ = Return on investment 1,570,000 = 36.00% 12.00 % B

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison, Eric Noreen, Peter Brewer

16th edition

1259307417, 978-1260153132, 1260153134, 978-1259307416

Students also viewed these Accounting questions