managerial2 - the ROIs of each are as follows Project...

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Homework Due on Nov 8 1. Given below is an excerpt from a management performance report: Budget Actual Difference Contribution margin $600,000 $580,000 $20,000 U Controllable fixed costs $200,000 $220,000 $20,000 U The manager's overall performance a. is 10% above expectations. b. is 10% below expectations. c. is equal to expectations. d. cannot be determined from the information provided. 2. Harbaugh Company recorded operating data for its shoe division for the year. The company’s desired return is 5%. Sales $500,000 Contribution margin 100,000 Total direct fixed costs 60,000 Average total operating assets 200,000 Which one of the following reflects the controllable margin for the year? a. 20% b. 50% c. $30,000 d. $40,000 3. The area manager of the Little Italy Restaurants is considering two possible expansion alternatives. The required investments, expected controllable margins, and
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Unformatted text preview: the ROIs of each are as follows: Project Investment Controllable Margin ROI Charlotte $120,000 $30,000 25% Richmond $540,000 $50,000 9.25% The Little Italy segment has currently $2,000,000 in invested capital and a controllable margin of $250,000. Which one of following projects will increase the Little Italy division’s ROI? a. Both the Charlotte and Richmond options b. Only the Charlotte option c. Only the Richmond option d. Neither the Charlotte nor the Richmond options 4. Kenco Pharmaceuticals is evaluating its Brown division, an investment center. The division has a $45,000 controllable margin and $300,000 of sales. How much will Kenco’s average operating assets be when its return on investment is 10%? a. $450,000 b. $495,000 c. $300,000 d. $255,000...
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This note was uploaded on 11/02/2010 for the course CIS 5200 taught by Professor Kodandaram during the Spring '10 term at FIT.

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