Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: For example, electricity costs should be $1,200 per month plus $0.09 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.80 per car washed. The company actually washed 8.600 cars in August. Required: Calculate the company's activity variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The foliowing table provides estimates concerning the company's costs: For example, electricity costs should be $1,000 per month plus $0.09 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.20 per car washed. The actual operating results for August are as follows: Required: Calculate the company's revenue and spending variances for August Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect the., zero Vulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State that explosively erupted in 1982 . Data concerning the company's operations in July appear below: The company messures its activity in terms of fights. Customers can buy individual tickets for overllights or hire an entire plane for an overfight at a discount Required: 1. Prepare a flexible budget performance report for July that includes revenue and spending variances and activity variances Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Tiptop Flight School offers flying lessons at a small municipal airport. The school's owner and manager has been attempting to evaluate performance and control costs using a variance report that compares the planning budget to actual results. A recent variance report appears below: After several months of using these reports, the owner has become frustrated. For example, she is quite conflident that instructor wages were very tightly controlled in July, but the report shows an unfovorable variance. The planning budget was developed using the following formulas, where q is the number of lessons sold: Required: 2. Complete the flexible budget performonce report for the school for July. Note: Indicate the effect of each variance by selecting "F" for favorable, "U* for unfavorable, and "None" for no effect (l.e., zero Provide the missing data in the following table for a distributor of martial arts products: Note: Enter "Turnover" and "ROI" answers to 1 decimal place. Tan Corporation of Japan has two regional divisions with headquarters in Osako and Yokohama, Selected data on the two divisions follow: Required: 1. For each division, compute the return on investment (ROI). 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 17%. Compute the residual income for each division. Complete this question by entering your answers in the tabs below. For each division, compute the return on investment (RO1). A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: Note: Loss amounts should be indicated by a minus sign. Round your percentage answers to nearest whole percent. Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 9% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity? Complete this question by entering your answers in the tabs below. Compute the margin, tumover, and return on investment (ROI) for each division. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Required: 1. Compute the margin, turnover, and return on investment (ROn) for each division. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 9% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity? Complete this question by entering your answers in the tabs below. Compute the residual income (loss) for each division. Note: Do not round intermediate calculations. Loss amounts should be indicated by a minus sign. Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 9% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity? Complete this question by entering your answers in the tabs below. Assume that each division is presented with an investment opportunity that would yield a 9% rate of return. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Required: 1. Compute the margin, turnover, and return on investment (ROl) for each division. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 9% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity? Complete this question by entering your answers in the tabs below. Assume that each division is presented with an investment opportunity that would yield a 9% rate of retum, If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? "Tknow headquarters wants us to add that new product line," said Dell Havasi, manager of Bilings Company's Office Products Division "But I want to see the numbers before I make any move. Our division's return on investment (ROn has led the company for three years, and I don't want any letdown:" Billings Company is a decentralized wholesaler with five outonomous divisions. The divisions are evoluated on the basis of ROL, with year-end bonuses given to the divisional manogers who have the highest ROls. Operating results for the company's Office Products Division for this year are given below: The company had an overall return on investment (ROI) of 18.00% this year (considering all divisions). Next year the Office Products Division has an opportunity to add a new product line that would require an additional investment that would increase average operating assets by $2,350,000. The cost and tevenue characteristics of the new product line per year would be: Required: 1. Compute the Office Products Division's margin, turnover, and ROI for this yoar. 2. Compute the Office Products Division's margin, turnover, and ROI for the new product line by itselt 3. Compute the Office Products Division's margin, turnovec, and ROl for next year assuming that it performs the same as this year and adds the new product line. 4. If you were in Dell Havasi's position, would you accept or reject the new product line? 5. Why do you suppose headquarters is anxious for the Office Products Division to add the new product line? 6. Suppose thot the company's minimum required rote of return on operating assets is 15% and thot performance is evaluated using residual income. a. Compute the Orfice Products Division's residual income for this year. b. Compute the Office Products Division's residual income for the new product line by itselt c. Compute the Office Products Division's residual income for next year assuming that it performs the same as this year and odis the new product line d. Usino the residual income aoproach. If vou were in Dell Havasis oosition. would vou acceot or reiect the new oroduct line