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Selected operating data for two divisions of Outback Brewing. Ltd., of Australia are given below: Sales Average operating assets Net operating income Property, plant,
Selected operating data for two divisions of Outback Brewing. Ltd., of Australia are given below: Sales Average operating assets Net operating income Property, plant, and equipment (net) Division Queensland $ 1,456,000 $ 560,000 $ 116,480 New South Wales $ 2,745,000 $ 610,000 $ 137,250 $ 256,000 $ 206,000 Required: 1. Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turni 2. Which divisional manager seems to be doing the better job? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Queensland division New South Wales division Margin Turnover %6 %6 ROI 96 10 1 Selected operating data for two divisions of Outback Brewing. Ltd., of Australia are given below: points Division Queensland New South Wales Sales $ 1,456,000 $ 2,745,000 Average operating assets Net operating income $ 560,000 $ 610,000 $ 116,480 $ 137,250 Property, plant, and equipment (net) $ 256,000 $ 206,000 eBook + Hint Required: 1. Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of ma 2. Which divisional manager seems to be doing the better job? Complete this question by entering your answers in the tabs below. Ask Print Required 1 Required 2 Which divisional manager seems to be doing the better job? Queensland division References New South Wales division Required 1 Required 2 > 10 2 points Juniper Design Limited of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of $470,000 on sales of $1,900,000. The company's average operating assets for the year were $2,100,000 and its minimum required rate of return was 13%. Required: Compute the company's residual income for the year. eBook Hint Ask Print References Residual income 10 3 points Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $35 per unit. To evaluate this offer, Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor internally. 20,000 Units Per Unit per Year eBook Fixed manufacturing overhead, traceable Direct materials Direct labor Variable manufacturing overhead $ 17 $ 340,000 11 3 3* 220,000 60,000 60,000 Fixed manufacturing overhead, allocated Total cost 6 120,000 $ 40 $ 800,000 Hint *One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Ask Print References Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 20,000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to launch a new product. The segment margin of the new product would be $200,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 20,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 20,000 carburetors from the outside supplier? < Required 1 Required 2 > 10 3 points Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Tr Engines, Limited, for a cost of $35 per unit. To evaluate this offer, Troy Engines, Limited, has gathered the following information rel to its own cost of producing the carburetor internally: 20,000 Units Direct materials Direct labor Variable manufacturing overhead Per Unit $ 17 per Year 11 $ 340,000 220,000 3 eBook Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost 3* 6 60,000 60,000 120,000 $ 40 $ 800,000 Hint *One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Ask Print References Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would the financial advantage (disadvantage) of buying 20,000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to launch a new product. T segment margin of the new product would be $200,000 per year. Given this new assumption, what would be the financial advanta (disadvantage) of buying 20,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Should the outside supplier's offer be accepted? OYes ONO < Required 1 Required 3 > 10 3 points Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $35 per unit. To evaluate this offer, Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor internally. 20,000 Units Per Unit per Year eBook Direct materials Direct labor Variable manufacturing overhead $ 17 11 $ 340,000 220,000 3 60,000 Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost 3* 6 60,000 120,000 $ 40 $ 800,000 Hint *One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Ask Print References Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 20,000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to launch a new product. The segment margin of the new product would be $200,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 20,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Suppose that if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to launch a new product. The segment margin of the new product would be $200,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 20,000 carburetors from the outside supplier? < Required 2 Required 4 > 10 3 points Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $35 per unit. To evaluate this offer, Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor internally: 20,000 Units Per Unit per Year Direct materials Direct labor Variable manufacturing overhead $ 17 $ 340,000 11 220,000 3 eBook 60,000 Fixed manufacturing overhead, traceable 3* 60,000 Fixed manufacturing overhead, allocated Total cost 6 120,000 $ 40 $ 800,000 Hint *One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Ask Print References Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 20,000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? 3. Suppose that if the carburetors were purchased. Troy Engines, Limited, could use the freed capacity to launch a new product. The segment margin of the new product would be $200,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 20,000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3, should the outside supplier's offer be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Given the new assumption in requirement 3, should the outside supplier's offer be accepted? Yes ONO < Required 3 Required 4 > 10 4 points Imperial Jewelers manufactures and sells a gold bracelet for $403.00. The company's accounting system says that the unit product cost for this bracelet is $262.00 as shown below: Direct materials Direct labor Manufacturing overhead $ 143 80 39 Unit product cost $ 262 eBook Hint Ask Print References The members of a wedding party have approached Imperial Jewelers about buying 18 of these gold bracelets for the discounted price of $363.00 each. The members of the wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $6. Imperial Jewelers would also have to buy a special tool for $466 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $7.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party's order using its existing manufacturing capacity. Required: 1. What is the financial advantage (disadvantage) of accepting the special order from the wedding party? 2. Should the company accept the special order? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) of accepting the special order from the wedding party? < Required 1 Required 2 > 10 5 points Wexpro, Incorporated, produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $62,000 per ton, one-fourth of which is allocated to product X15. Eight thousand three hundred units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $16 each, or processed further at a total cost of $9,800 and then sold for $19 each. Required: 1. What is the financial advantage (disadvantage) of further processing product X15? 2. Should product X15 be processed further or sold at the split-off point? eBook 1. Ask 2. Product X15 should be Print References
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