Problem Set 3-table - 10000 6000 124000 100000 6000 2000...

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Animal Company as a whole Net Sales 300000 Variable Costs Cost of merchandise managers 46000 Operating Expenses 14000 Total variable costs 60000 Contribution margin 240000 Less: fixed costs controllable by division managers 16000 Contribution Controllable by managers 224000 Less: fixed costs controllable by others 8000 Contribution by segments 216000 Less: Unallocated costs 14000 Income before income taxes 202000
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Reptiles Division Mammal Division 170000 130000 28000 18000 8000 6000 36000 24000 134000 106000
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Unformatted text preview: 10000 6000 124000 100000 6000 2000 118000 98000 Linen Cotton Revenue 300000 350000 Income 30000 90000 Invested Capital 100000 150000 Cost of capital 20% 15% a. ROI = income/investment 0.3 0.6 b. Return on sales = income/ revenue 0.10 0.26 c. Capital turnover = revenue/invested capital 3.0 2.3 Capital charge = Cost of capital * Invested Capital 20000 22500 d. Residual income = net operating income - capital charge) 10000 67500...
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Problem Set 3-table - 10000 6000 124000 100000 6000 2000...

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