ACC 331 Module 5 Spreadsheet Exam Chapter 12

ACC 331 Module 5 Spreadsheet Exam Chapter 12 - 1. Spiess...

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Unformatted text preview: 1. Spiess Corporation has two major business segment--Apparel and Accessories. Data concerning those segments for December appear below: Sales revenues, Apparel $370,000 Variable expenses, Apparel $185,000 Traceable fixed expenses, Apparel $48,000 Sales revenues, Accessories $670,000 Variable expenses, Accessories $275,000 Traceable fixed expenses, Accessories $114,000 Common fixed expenses totaled $309,000 and were allocated as follows: $142,000 to the A business segment and $167,000 to the Accessories business segment. Required: Prepare a segmented income statement in the contribution format for the company. Total Apparel Sales $1,040,000 $370,000 36% Variable Exp $460,000 $185,000 40% CM $580,000 $185,000 32% Traceable Fixed Exp $162,000 $48,000 30% Segment Margin $418,000 $137,000 33% Common Fixed Exp $309,000 NOI $109,000 Show dollar amounts and percentages of Total Company sales. pparel Accessories $670,000 64% $275,000 60% $395,000 68% $114,000 70% $281,000 67% 1. The Clipper Corporation had net operating income of $380,000 and average opera The corporation requires a return on investment of 18%. NOI $380,000 AOA $2,000,000 ROI 18% Required: a. Calculate the company's return on investment (ROI) and residual income (RI). b. Clipper Corporation is considering an investment of $70,000 in a project that will gen operating income of $12,950. Would it be in the best interests of the company to ma NOI $12,950 AOA $70,000 c. Clipper Corporation is considering an investment of $70,000 in a project that will genc....
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ACC 331 Module 5 Spreadsheet Exam Chapter 12 - 1. Spiess...

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