Problem 3 (Textbook Reference: P9-7) - Determine margin, turnover, and return on investment for a segment and the effect on each when the variables are changed The manager of the Winston Company faced the following data for the year 2015 Contribution to indirect expenses 1,800,000 Assets directly used by and identified with the segment S 22,500,000 Sales S 36,000,000 Required Determine the effect on margin, turnover, and return on investment of the segment in 2015 if each of the following changes were to occur. Consider each change separately and assume that any items not specifically mentioned remain the same as in 2014 1. A campaign to control costs resulted in $180,000 of reduced 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 $900,000, and expenses decreased by $72,000. Round each answer to two decimal places (1) Calculate segment income if the above changes were to occur: (2) Calculate segment investment if the above changes were to occur: (3) Calculate segment sales if the above changes were to occur: (4) Calculate segment margin if the above changes were to occur: (5) Calculate segment turnover if the above changes were to occur (6) Calculate segment ROI if the above changes were to occur: Problem 3 (Textbook Reference: P9-7) - Determine margin, turnover, and return on investment for a segment and the effect on each when the variables are changed The manager of the Winston Company faced the following data for the year 2015 Contribution to indirect expenses 1,800,000 Assets directly used by and identified with the segment S 22,500,000 Sales S 36,000,000 Required Determine the effect on margin, turnover, and return on investment of the segment in 2015 if each of the following changes were to occur. Consider each change separately and assume that any items not specifically mentioned remain the same as in 2014 1. A campaign to control costs resulted in $180,000 of reduced 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 $900,000, and expenses decreased by $72,000. Round each answer to two decimal places (1) Calculate segment income if the above changes were to occur: (2) Calculate segment investment if the above changes were to occur: (3) Calculate segment sales if the above changes were to occur: (4) Calculate segment margin if the above changes were to occur: (5) Calculate segment turnover if the above changes were to occur (6) Calculate segment ROI if the above changes were to occur
