ACC 331 Module 5 Spreadsheet Exam Chapter 12

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

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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 business segment and $167,000 to the Accessories business segment. Required: Prepare a segmented income statement in the contribution format for the company.  Sales revenues, Apparel $370,000 Variable expenses, Apparel $185,000 50% Contribution margin $185,000 50% Traceable fixed expenses, Apparel $48,000 13% Common Fixed costs, allocated 142,000 38% $(5,000) Show dollar amounts and percentages of Total Company sales. 
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e Apparel  Sales revenues, Accessories $670,000 Variable expenses, Accessories $275,000 41% Contribution margin $395,000 59% Traceable fixed expenses, Accessories $114,000 17% Common Fixed costs, allocated $167,000 25% $114,000
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1. The Clipper Corporation had net operating income of $380,000 and average oper     The corporation requires a return on investment of 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 ge     operating income of $12,950. Would it be in the best interests of the company to ma c. Clipper Corporation is considering an investment of $70,000 in a project that will ge     income of $12,950. If the division planning to make the investment currently has a r     and its manager is evaluated based on the division's ROI, will the division manager     to make this investment?  Explain why or why not. d. Clipper Corporation is considering an investment of $70,000 in a project that will ge     income of $12,950. If the division planning to make the investment currently has a residual 
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