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Jansen Company reports the following for its ski department for the year 2019. All of its costs are direct, except as noted. Sales Cost of
Jansen Company reports the following for its ski department for the year 2019. All of its costs are direct, except as noted. Sales Cost of goods sold Salaries Utilities Depreciation Office expenses $625,000 425,000 112,000 ($25,600 is indirect) 16,100 ($5,300 is indirect) 55,000 ($17,000 is indirect) 26,200 (all indirect) 1. Prepare a departmental income statement for 2019. 2. & 3. Prepare a departmental contribution to overhead report for 2019. Based on these two performance reports, should Jansen eliminate the ski department? Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Prepare a departmental income statement for 2019. JANSEN COMPANY Departmental Income Statement-Ski Department For Year Ended December 31, 2019 Ski Dept Operating expenses Req 1 Req 2 and 3 > You must prepare a return on investment analysis for the regional manager of Fast & Great Burgers. This growing chain is trying to decide which outlet of two alternatives to open. The first location (A) requires a $500,000 investment and is expected to yield annual net income of $70,000. The second location (B) requires a $200,000 investment and is expected to yield annual net income of $40,000. Compute the return on investment for each Fast & Great Burgers alternative. Using return on investment as your only criterion, which location (A or B) should the company open? (The chain currently generates an 20% return on total assets.) Complete this question by entering your answers in the tabs below. Return on Investment Choice of Location Compute the return on investment for each Fast & Great Burgers alternative. Return on Investment Denominator Numerator = IIII ROI ROI Location A Location B
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