Homework: Responsibility Accounting Assignment i Saved Help Save & Exit Submit Check my work Required information Part 1 of 2 [The following information applies to the questions displayed below.] Megamart provides the following information on its two investment centers. 2 point Investment Center Sales Income Average Assets Electronics $ 44, 250, 000 $ 3, 363, 000 $ 17, 700, 000 Sporting goods 24, 660, 000 2, 466, 000 13, 700, 000 Book 1. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? 2. Assume a target income of 10% of average assets. Compute residual income for each center. Which center generated the most Hint residual income? 3. Assume the Electronics center is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? The target return is 10%. Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? Return on Investment Numerator: | Denominator: 1 Return on Investment Electronics 11 11 11 Sporting Goods Which center is most efficient at using assets to generate income? Required 1 Required 2 > Homework: Responsibility Accounting Assignment i Saved Help Save & Exit Submit Check my work Required information Part 1 of 2 [The following information applies to the questions displayed below.] Megamart provides the following information on its two investment centers. 2 point Investment Center Sales Income Average Assets Electronics $ 44, 250, 000 $ 3, 363, 000 $ 17, 700, 000 Sporting goods 24, 660, 000 2, 466, 000 13, 700, 000 Book 1. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? 2. Assume a target income of 10% of average assets. Compute residual income for each center. Which center generated the most Hint residual income? 3. Assume the Electronics center is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? The target return is 10%. Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Assume a target income of 10% of average assets. Compute residual income for each center. Which center generated the most residual income? Investment Center Electronics Sporting Goods Income Less target income Residual income Which center generated the most residual income? Homework: Responsibility Accounting Assignment i Saved Help Save & Exit Submit Check my work Required information Part 2 of 2 [The following information applies to the questions displayed below.] Megamart provides the following information on its two investment centers. 2 point Investment Center Sales Income Average Assets Electronics $ 44, 250, 000 $ 3, 363, 000 $ 17, 700, 000 Sporting goods 24, 660, 000 2, 466, 000 13, 700, 000 Book Compute profit margin and investment turnover for each center. Which center generates more income per dollar of sales? Which department is most efficient at generating sales from average invested assets? Hint Complete this question by entering your answers in the tabs below. Print Profit Margin Investment Turnover References Compute profit margin for each center. Which center generates more income per dollar of sales? Profit Margin Numerator: Denominator: Investment Center Profit Margin Electronics Sporting Goods Which center generates more income per dollar of sales Profit Margin Investment Turnover Homework: Responsibility Accounting Assignment i Saved Help Save & Exit Submit Check my work Required information Part 2 of 2 [The following information applies to the questions displayed below.] Megamart provides the following information on its two investment centers. 2 point Investment Center Sales Income Average Assets Electronics $ 44, 250, 000 $ 3, 363, 000 $ 17, 700, 000 Sporting goods 24, 660, 000 2, 466, 000 13, 700, 000 Book Compute profit margin and investment turnover for each center. Which center generates more income per dollar of sales? Which department is most efficient at generating sales from average invested assets? Hint Complete this question by entering your answers in the tabs below. Print Profit Margin Investment Turnover References Compute investment turnover for each center. Which department is most efficient at generating sales from average invested assets? Investment Turnover Numerator: / Denominator: Investment Center =Investment Turnover Electronics Sporting Goods Which department is most efficient at generating sales from average invested assets? Homework: Responsibility Accounting Assignment i Saved Help Save & Exit Submit Check my work 10 Required information Part 1 of 2 [The following information applies to the questions displayed below.] A manufacturer reports the following for two of its divisions for a recent month. 2 Beverage Cheese point Division Division Average assets $ 7,800 $ 14, 200 Sales 3,420 5 ,560 Income 852 1, 220 eBook For each division, compute: Hint 1. return on investment. 2. profit margin. Print 3. investment turnover. Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Compute return on investment. Return on Investment Numerator: Denominator: Division Return on investment Beverage Cheese Homework: Responsibility Accounting Assignment i Saved Help Save & Exit Submit Check my work 10 Required information Part 1 of 2 [The following information applies to the questions displayed below.] A manufacturer reports the following for two of its divisions for a recent month. 2 Beverage Cheese point Division Division Average assets $ 7,800 $ 14, 200 Sales 3,420 5 ,560 Income 852 1, 220 eBook For each division, compute: Hint 1. return on investment. 2. profit margin. Print 3. investment turnover. Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Compute profit margin Profit Margin Numerator: | Denominator: Division Profit margin Beverage Cheese Homework: Responsibility Accounting Assignment i Saved Help Save & Exit Submit Check my work 10 Required information Part 1 of 2 [The following information applies to the questions displayed below.] A manufacturer reports the following for two of its divisions for a recent month. 2 Beverage Cheese point Division Division Average assets $ 7,800 $ 14, 200 Sales 3,420 5 ,560 Income 852 1, 220 eBook For each division, compute: Hint 1. return on investment. 2. profit margin. Print 3. investment turnover. Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Compute investment turnover. Investment Turnover Numerator: 1 Denominator: Division = Investment turnover Beverage Cheese Homework: Responsibility Accounting Assignment i Saved Help Save & Exit Submit Check my work 12 The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a market price of $106 each. Each trailer incurs $45 of variable manufacturing costs. The Trailer division has capacity for 26,000 trailers per year and has fixed costs of $500,000 per year. 2 points me the Assembly division of Baxter Bicycles wants to buy 4,800 trailers per year from the Trailer division. If the Trailer division can sell all of the trailers it manufactures to outside customers (and has no excess capacity), what price should be used on transfers between divisions? the Trailer division currently only sells 10,200 trailers to outside customers and has excess capacity. The Assembly division Boo wants to buy 4,800 trailers per year from the Trailer division. What is the range of acceptable prices on transfers between divisions? 1. Transfer price per trailer Hint 2. Transfer price per trailer will be at least but not more than Print References Homework: Responsibility Accounting Assignment i Saved Help Save & Exit Submit Check my work 13 Home Properties is developing a subdivision that includes 400 home lots. The 220 lots in the Canyon section are below a ridge and do not have views of the neighboring canyons and hills; the 180 lots in the Hilltop section offer unobstructed views. The expected selling price for each Canyon lot is $55,000 and for each Hilltop lot is $97,000. The developer acquired the land for $2,000,000 and 2 spent another $3,300,000 on street and utilities improvements points Assign the joint land and improvement costs of $5,300,000 to the Canyon section and the Hilltop section using the value basis of allocation. (Do not round your intermediate calculations.) Book Sales Value Percent of Sales Value Cost to Allocate Allocated Cost Quantity of Lots Hint Numerator Denominator of Sales Value Canyon section Hilltop section Print Totals References Homework: Responsibility Accounting Assignment i Saved Help Save & Exit Submit Check my work 14 A dairy company processed raw milk for $61,000. This raw milk can be converted into the following types of milk with listed sales values. 2 Joint Products Sales Value points Whole milk $ 26, 000 2% milk 41, 600 Skim milk 36, 400 Total $ 104, 000 Book Use the sales value basis to (1) allocate the total cost of the raw milk to each type of milk and (2) determine the gross profit for each type of milk. Hint Joint Products Sales Value Percent of Total Allocated Cost Gross Profit Numerator Denominator % of Total Print Whole milk 2% milk References Skim milk Totals