Question
Please help me with my homework :( I've answered 1-9 so far :( Please show your solutions. Thank you so much!!! 10. Howe Company increased
Please help me with my homework :( I've answered 1-9 so far :( Please show your solutions. Thank you so much!!!
10. Howe Company increased its ROI from 20% to 25%. Net operating income and sales remained at their previous levels of $40,000 and $1,000,000 respectively. The increase in ROI was attributed to a reduction in operating assets brought about by the sale of obsolete inventory at cost (the proceeds from the sale were used to reduce bank loans). By how much was inventory reduced? A. $8,000 B. $40,000 C. $10,000 D. it is impossible to determine from the data given.
11. Campion Company has two divisions, A and B. The following data pertain to operations in May: If common fixed expenses were $10,000, total fixed expenses were: A. $10,000 B. $30,500 C. $40,500 D. $65,500
12. Reardon Retail Company consists of two stores, A and B. Store A had sales of $80,000 during March, a contribution margin ratio of 30%, and a segment margin of $11,000. The company as a whole had sales of $200,000, a contribution margin ratio of 36%, and segment margins for the two stores totaling $31,000. If net operating income for the company was $15,000 for the month, the traceable fixed expenses in Store B must have been: A. $16,000 B. $20,000 C. $31,000 D. $28,000
13. The Winter Products Division of American Sports Corporation produces and markets two products for use in the snow: Sleds and Saucers. The following data were gathered on activities last month: Required: Prepare a segmented income statement in the contribution format for last month. 14. Financial data for Beaker Company for last year appear below: The company paid dividends of $2,100 last year. The "Investment in Cedar Company" on the statement of financial position represents an investment in the stock of another company. Required: a. Compute the company's margin, turnover, and return on investment for last year. b. The Board of Directors of Beaker Company has set a minimum required return of 20%. What was the company's residual income last year?
14. Eber Wares is a division of a major corporation. The following data are for the latest year of operations: Required: a. What is the division's margin? b. What is the division's turnover? c. What is the division's return on investment (ROI)? d. What is the division's residual income?
15. Wryski Corporation had net operating income of $150,000 and average operating assets of $500,000. The company requires a return on investment of 19%. Required: a. Calculate the company's current return on investment and residual income. b. The company is investigating an investment of $400,000 in project that will generate annual net operating income of $78,000. What is the return on investment of the project? What is the residual income of the project? Should the company invest in this project?
16. The following data have been extracted from the year-end reports of two companies Company X and Company Y: Required: Fill in the missing data on the above table.
17. Arlon Jeffries Candy Corporation produces and sells taffy by the bag and uses a standard cost system to collect costs related to production. The following information relates to Arlon Jeffries' operations for last month: Required: Compute the unknown quantities above. (Numbers 4, 6, 7, and 10.)
18. The following standards for variable overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: Required: a. What is the variable overhead rate variance for the month? b. What is the variable overhead efficiency variance for the month?
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