managerial accounting chapter 11

- X fx Please complete the Exercises as follows: BCDEF GHI Zmart, a retailer of consumer goods, provides the following information on two of its departments (each considered an Investment center) Average invested Investment Center $ Sales 10,000,000 8,000,000 Net Income $ 750,000 800,000 Electronics Sporting Goods $3,750,000 5,000,000 (1) Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? (2) Assume a target Income level of 12% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company? (3) Assume the Electronics department is presented with a new investment opportunity that will yield a 15% return on assets. Should the new investment opportunity be accepted? Explain. Jackson Company's fixed budget for the first quarter of calendar year 2016 reveals the following. Prepare flexible budgets following a contribution margin format that shows variable costs per unit, fixed costs, and three different flexible budgets for sales volumes of 14,500, 15,000, and 15,500 units. $ 3,030,000 $ 345,000 705,000 405.000 90,000 1,545,000 1,485,000 Sales (15,000) Cost of goods sold Direct materials Direct labor Production supplies Plant manager salary Gross profit Selling expenses Sales commissions Packaging Advertising Administrative expenses Administrative salaries Depreciation-office equip. Insurance Office rent Income from operations 150,000 240,000 100.000 490,000 110,000 60,000 48.000 54,000 272,000 723,000 $ Chad income at 14.500 S SOO