IHEUWAEXCEL BACK UPCHAPTER12 - = 12,450,000 3,000,000 =...

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BACK UP WORK FOR ASSIGNED PROBLEMS Problem 1 Total Fibers Feedstocks Sales Revenue $ 1,690,000 870,000 820,000 Variable cost of sales $ 770,000 426,000 344,000 Contribution Margin $ 920,000 440,000 476,000 Less Traceable fixed expense $ 340,000 148,000 156,000 Segment Margin $ 580,000 292,000 320,000 Less Common Fixed expense $ 314,000 129,000 185,000 Net operating loss $ 266,000 Problem 2 Sales = 1,357,050 / 12,450,000 0.109 x 100 = 10.9% B. Division Turnover = Sales / Average operating assets
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Unformatted text preview: = 12,450,000 / 3,000,000 = 4.15 C. Division return on investment ROI = Net operating income / Average operating assets = 1,357,050 / 3,000,000 = 0.452 = 0.452 x 100 = 45.2 % Problem 3 Residue Income = Net Operating income - ( Average operating assets X Miminum required rate of return) = 86700 - ( 750,000 X 0.13 ) = 86700 - (97500) = -10800 A, Division Margin = Net operating income...
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This note was uploaded on 05/08/2010 for the course ACCOUNTING ACC203 taught by Professor Richard during the Spring '10 term at Univ. of Massachusetts Med. School.

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