Question 2 View Policies Current Attempt in Progress UrLink Company is a newly formed company specializing in high-speed Internet service for home and business. The owner, Lenny Kirkland, had divided the company into two segments: Home Internet Service and Business Internet Service. Each segment is run by its own supervisor, while basic selling and administrative services are shared by both segments. Lenny has asked you to help him create a performance reporting system that will allow him to measure each segment's performance in terms of its profitability. To that end, the following information has been collected on the Home Internet Service segment for the first quarter of 2020. Budgeted Actual Service revenue $24,800 $26,000 Allocated portion of: Building depreciation 10,000 10,000 Advertising 4,600 4,700 Billing 3,600 3,100 Property taxes 1,300 1,000 Material and supplies 1,500 1,200 Supervisory salaries 9,500 9,300 Insurance 4,000 3,100 Wages 3,000 3,200 Gas and oil 2,800 3,500 Equipment depreciation 1,500 1,500 Prepare a responsibility report for the first quarter of 2020 for the Home Internet Service Segment. URLINK COMPANY URLAR CURTANT Home Internet Services Segment Responsibility Report For the Quarter Ended March 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budgeted Actual Controllable Margin Contribution Margin Controllable Food Costs Equipment Depreciation Gas and Ou hrane Material and Supplies Service Revenue Supervisory Salanes Total Controllable Pared Costs Total Variable Costs Variable Costs Wages Building Depreciation Advertising Bing Property Taxes Question 3 View Policies Current Attempt in Progress The South Division of Wiig Company reported the following data for the current year. Sales $3,100,000 Variable costs 2,015,000 600,000 Controllable fixed costs Average operating assets 5,000,000 Top management is unhappy with the investment center's return on investment (ROI). It asks the manager of the South Division to submit plans to Improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action 1. Increase sales by $300,000 with no change in the contribution margin percentage. 2. Reduce variable costs by $155.000, 3. Reduce average operating assets by 3%. (a) Compute the return on investment (ROI) for the current year. (Round ROI to 2 decimal places, s. 1.57%), Return on Investment (hin ni Ch 23: Homework with Video Assistance 1. Increase sales by $300,000 with no change in the contribution margin percentage. 2. Reduce variable costs by $155,000. 3. Reduce average operating assets by 3%. (a) Compute the return on investment (ROI) for the current year. (Round ROI to 2 decimal places, e.g. 1.57%.) Return on Investment (b) Using the ROI formula, compute the Rol under each of the proposed courses of action (Round ROI to 2 decimal places, e.. 1.57%.) Return on investment Action 1 Action 2 Action 3 Question 4 View Policies Current Attempt in Progress Optimus Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2020, and relevant budget data are as follows. Sales Variable cost of goods sold Variable selling and administrative expenses Controllable fixed cost of goods sold Controllable fixed selling and administrative expenses Actual Comparison with Budget $1,401,000 $100,000 favorable 680,000 55,000 unfavorable 126,000 25,000 unfavorable 170,000 On target 77,000 On target Average operating assets for the year for the Home Division were $2,000,000 which was also the budgeted amount. Prepare a responsibility report for the Home Division (List variable costs before fixed costs. Round ROI to 2 decimal places, 1.57% OPTIMUS COMPANY Home Division Responsibility Report For the Year Ended December 31, 2020 Difference Favorable Home Division Responsibility Report For the Year Ended December 31, 2020 Difference Favorable Unfavorable Neither Favor nor Unfavoral Budget Actual Selling and Administrative Total Controllable Direct Fixed Costs Total Variable Costs Gross Profit Contribution Margin Cost of Goods Sold Sales Controllable Margin Controllable Direct Ford Costs Variable costs ROI Question 2 View Policies Current Attempt in Progress UrLink Company is a newly formed company specializing in high-speed Internet service for home and business. The owner, Lenny Kirkland, had divided the company into two segments: Home Internet Service and Business Internet Service. Each segment is run by its own supervisor, while basic selling and administrative services are shared by both segments. Lenny has asked you to help him create a performance reporting system that will allow him to measure each segment's performance in terms of its profitability. To that end, the following information has been collected on the Home Internet Service segment for the first quarter of 2020. Budgeted Actual Service revenue $24,800 $26,000 Allocated portion of: Building depreciation 10,000 10,000 Advertising 4,600 4,700 Billing 3,600 3,100 Property taxes 1,300 1,000 Material and supplies 1,500 1,200 Supervisory salaries 9,500 9,300 Insurance 4,000 3,100 Wages 3,000 3,200 Gas and oil 2,800 3,500 Equipment depreciation 1,500 1,500 Prepare a responsibility report for the first quarter of 2020 for the Home Internet Service Segment. URLINK COMPANY URLAR CURTANT Home Internet Services Segment Responsibility Report For the Quarter Ended March 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budgeted Actual Controllable Margin Contribution Margin Controllable Food Costs Equipment Depreciation Gas and Ou hrane Material and Supplies Service Revenue Supervisory Salanes Total Controllable Pared Costs Total Variable Costs Variable Costs Wages Building Depreciation Advertising Bing Property Taxes Question 3 View Policies Current Attempt in Progress The South Division of Wiig Company reported the following data for the current year. Sales $3,100,000 Variable costs 2,015,000 600,000 Controllable fixed costs Average operating assets 5,000,000 Top management is unhappy with the investment center's return on investment (ROI). It asks the manager of the South Division to submit plans to Improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action 1. Increase sales by $300,000 with no change in the contribution margin percentage. 2. Reduce variable costs by $155.000, 3. Reduce average operating assets by 3%. (a) Compute the return on investment (ROI) for the current year. (Round ROI to 2 decimal places, s. 1.57%), Return on Investment (hin ni Ch 23: Homework with Video Assistance 1. Increase sales by $300,000 with no change in the contribution margin percentage. 2. Reduce variable costs by $155,000. 3. Reduce average operating assets by 3%. (a) Compute the return on investment (ROI) for the current year. (Round ROI to 2 decimal places, e.g. 1.57%.) Return on Investment (b) Using the ROI formula, compute the Rol under each of the proposed courses of action (Round ROI to 2 decimal places, e.. 1.57%.) Return on investment Action 1 Action 2 Action 3 Question 4 View Policies Current Attempt in Progress Optimus Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2020, and relevant budget data are as follows. Sales Variable cost of goods sold Variable selling and administrative expenses Controllable fixed cost of goods sold Controllable fixed selling and administrative expenses Actual Comparison with Budget $1,401,000 $100,000 favorable 680,000 55,000 unfavorable 126,000 25,000 unfavorable 170,000 On target 77,000 On target Average operating assets for the year for the Home Division were $2,000,000 which was also the budgeted amount. Prepare a responsibility report for the Home Division (List variable costs before fixed costs. Round ROI to 2 decimal places, 1.57% OPTIMUS COMPANY Home Division Responsibility Report For the Year Ended December 31, 2020 Difference Favorable Home Division Responsibility Report For the Year Ended December 31, 2020 Difference Favorable Unfavorable Neither Favor nor Unfavoral Budget Actual Selling and Administrative Total Controllable Direct Fixed Costs Total Variable Costs Gross Profit Contribution Margin Cost of Goods Sold Sales Controllable Margin Controllable Direct Ford Costs Variable costs ROI