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Please show your work step by step. Chapter 9 Demonstration Problem #2 Determine margin, turnover, and ROI for a segment and the effect on each

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Chapter 9 Demonstration Problem #2 Determine margin, turnover, and ROI for a segment and the effect on each when the variables are changed The manager of a segment of the Johnson Company faced the following data for the year 2018: Contribution to indirect expenses $ 5,000 Assets directly used by and identified with the segment $ 20,000 Sales $ 10,000 Required: Determine the effect on margin, turnover, and return on investment of the segment in 2018 if each of the following changes were to occur. Consider cach change separately and assume that any items not specifically mentioned remain the same as in 2018. Margin- Income Turnover ROI - Sales Investment Income Investment 1. A new advertising campaign resulted in $1,000 of increased expenses. Round each answer to two decimal places. a) Calculate segment income if the above changes were to occur: b) Calculate segment investment if the above changes were to occur c) Calculate segment sales if the above changes were to occur d) Calculate segment margin if the above changes were to occur e) Calculate segment turnover if the above changes were to occur. f) Calculate segment ROI if the above changes were to occur: 2. Certain nonproductive assets were eliminated. As a result, investment decreased by $5,000, and expenses decreased by S500. Round each answer to two decimal places. a) Calculate segment income if the above changes were to occur: b) Calculate segment investment if the above changes were to occur. c) Calculate segment sales if the above changes were to occur d) Calculate segment margin if the above changes were to occur e) Calculate segment turnover if the above changes were to occur: f) Calculate segment ROI if the above changes were to occur. 3. An advertising campaign resulted in increasing sales by $4,000, cost of goods sold by $2,000, and advertising expense by $3.000. Round each answer to he decimal places. a) Calculate segment income if the above changes were to occur b) Calculate segment investment if the above changes were to occur. c) Calculate segment sales if the above changes were to occur: d) Calculate segment margin if the above changes were to occur e) Calculate segment turnover if the above changes were to occur 1) Calculate segment ROI if the above changes were to occur. Effect on Income Sales Less: Cost of Goods Sold Gross Margin Less: Operating Expenses Operating Income 4. An investment was made in productive assets costing $8,000. As a result, sales increased by $2,000, and expenses decreased by S500. Round each answer to two decimal places. a) Calculate segment income if the above changes were to occur: b) Calculate segment investment if the above changes were to occur c) Calculate segment sales if the above changes were to occur d) Calculate segment margin if the above changes were to occur: e) Calculate segment turnover if the above changes were to occur: 1) Calculate segment ROI if the above changes were to occur: Effect on Income Sales Less: Cost of Goods Sold Gross Margin Less: Operating Expenses Operating Income

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