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Please answer this. 4. Selected sales and operating data for three divisions of CBL Engineering Itd. are given below: Variables Segment M Segment N Segment
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4. Selected sales and operating data for three divisions of CBL Engineering Itd. are given below: Variables Segment M Segment N Segment o Company Total Sales 30000 45000 60000 135000 Average operating assets 50000 55000 65000 170000 Net operating income 5400 5600 8000 19000 Minimum required rate of return 11.25% 12.53% 13.15% 11.85% i) Compute ROI for all segments and company overall. ii) Compute residual income for all segments and company overall. iii) Assume that each segment is presented with an investment opportunity that would yield a 13.55% rate of return. a) If performance is being measured by ROI, which segment(s) will probably accept the opportunity and why? b) If performance is being measured by residual income, which segment(s) will probably accept the opportunity and why? 4 5. Production budgets for MRS's for next four quarters are 2800, 3200, 3600 and 4000 units. Its target to use 25 units of raw material per unit @ Tk.12 per unit. It expects to maintain ending raw materials inventory equal to 15% of the raw materials needed to satisfy the following quarter's production. The company plans to pay 65% of materials cost within the quarter and rest in the following quarter. Current year's last quarter's end raw materials is 2250 units and first quarter's beginning raw materials is 2100 units. Last year's accounts payable balance was Tk.25800. Prepare direct materials budgetStep by Step Solution
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