Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost per Month $ 1,400 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $ 0.70 $ 0.09 $ 0.20 $ 0.30 $ $ $ $ 4,300 8,300 1,800 1,700 $ 0.02 For example, electricity costs are $1,400 per month plus $0.09 per car washed. The company expected to wash 8,400 cars in August and to collect an average of $6.20 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue $ 8,500 54,180 Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 6,380 2,126 1,920 7,180 8,300 2,000 1,768 Total expense 29,674 Net operating income $ 24,506 Required: Compute the company's revenue and spending variances for August. (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 Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sales Net operating income Average operating assets $ 18,400,000 $ 5,700,000 $ 36,400,000 Required: 1. Compute the margin for Alyeska Services Company. (Round your answer to 2 decimal places.) Margin % 2. Compute the turnover for Alyeska Services Company. (Round your answer to 2 decimal places.) Turnover times 3. Compute the return on investment (ROI) for Alyeska Services Company. (Round your intermediate calculations and final answer to 2 decimal places.) ROI Juniper Design Ltd. of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of $450,000 on sales of $1,500,000. The company's average operating assets for the year were $1,700,000 and its minimum required rate of return was 15%. Required: Compute the company's residual income for the year. Average operating assets Net operating income Minimum required return Residual income
