managerial accounting chapter 11

3) Use the information in the following table to compute each department's contribution to common expense (both in dollars and as a percent of sales), which department contributes the largest dollar amount? Which contributes the highest percent (as a percent of sales)? . $ Dept. A $ 106,000 68,370 37,630 6,890 Dept. B 360,000 $ 207,400 152,600 74,120 Dept.C 168,000 99,120 68,880 15,120 Sales Cost of goods sold Gross profit Total direct expenses Contribution Contribution percent Comments: 4) Compute return on assets for each of these New Jane Corp. divisions (each is an investment center). Also compute residual income assuming the minimum rate of return is 15%. Comment on the relative performance of each investment center. R.O.I. Residual Income Cameras and Printers Phones and communications Computers and accessories Comments: Op. Income Op. Assets Inv. $ 4,500,000 $ 20,000,000 1,500,000 12,500,000 800,000 10,000,000 5) Revise the following budget into CVP format and then flex it to 1200 actual units. 85,000 9,000 28,000 17,500 54,500 30,500 Sales (1000 units) Cost of Sales Direct Material Direct Labor Fixed Overhead Gross Profit Operating Expenses Fixed Variable Net Income 14,000 2.000 16.000 14.500