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IHEUWAACC203_12_B_ASSIGN_0424

# IHEUWAACC203_12_B_ASSIGN_0424 - of return is 10 Required a...

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CHAPTER 12 ASSIGNMENT PROBLEM #1 Data for December concerning Dinnocenzo Corporation's two major business segments-Fibers and Feedstocks-appear below: Common fixed expenses totaled \$314,000 and were allocated as follows: \$129,000 to the Fibers business segment and \$185,000 to the Feedstocks business segment. Required: Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts. PROBLEM #2 Gebru Industries is a division of a major corporation. Last year the division had total sales of \$12,450,000, net operating income of \$1,357,050, and average operating assets of \$3,000,000. The company's minimum required rate
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Unformatted text preview: of return is 10%. Required: a. What is the division's margin? 10.9 % b. What is the division's turnover? 4.15 c. What is the division's return on investment (ROI)? 45.2 % PROBLEM #3 The Casket Division of Roybal Corporation had average operating assets of \$750,000 and net operating income of \$86,700 in March. The company uses residual income to evaluate the performance of its divisions, with a minimum required rate of return of 13%. Required: What was the Casket Division's residual income in March? -10,800...
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