Chapter 12 Practice Problems Blank

Chapter 12 Practice Problems Blank - 1. Data for September...

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1. Data for September for Mossman Corporation and its two major business segments, North and South, appear below: Sales revenues, North $541,000 Variable expenses, North $261,000 Traceable fixed expenses, North $74,000 Sales revenues, South $860,000 Variable expenses, South $403,000 Traceable fixed expenses, South $77,000 In addition, common fixed expenses totaled $316,000 and were allocated as follows: $164,000 to the North business segment and $152,000 to the South business segment. The contribution margin of the South business segment is: Answer: 2. Wryski Corporation had net operating income of $159,000 and average operating assets of $410,000. The company requires a return on investment of 18.80%. Required: a . Calculate the company’s current return on investment and residual income. (Round Return on investmen t ________ _ % Residual income $ ________ _ The company is investigating an investment of $450,000 in project that will generate annual net operating income of $85,950. b1 . What is the return on investment of the project? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Return on investment _________% b2 . What is the residual income of the project? (Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.) Residual income $________ __ b3 . Should the company invest in this project?
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3. Eber Wares is a division of a major corporation. The following data are for the latest year of operations: Sales $ 30,600,000 Net operating income $ 1,179,000 Average operating assets $ 8,970,000 The company’s minimum required rate of return 18.0 % Required: a. What is the division’s margin? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Profit margin ________% b. What is the division’s turnover? (Round your answer to 2 decimal places.) Asset turnover ratio ____________ c. What is the division’s return on investment (ROI)? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Return on investment __________% d. What is the division’s residual income? (Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.) Residual income $ 4. Licuado Juice Company has four product lines; Orange, Tomato, Carrot, and Grape. Shown below is last year's income statement segmented by product line: Orange Tomato Carrot Grape Sales $67,000 $33,000 $24,500 $46,000 Variable expenses 23,400 10,600 10,700 17,700 Contribution margin 43,600 22,400 13,800 28,300 Traceable fixed expenses 11,200 7,800 8,100 6,000
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Segment margin $32,400 $14,600 $ 5,700 $22,300 Net operating income last year for Licuado Company as a whole was $24,700. If the Carrot product line would have been dropped at the beginning of last year, how would
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This note was uploaded on 10/17/2011 for the course ACCT 206 taught by Professor Dr.zachry during the Spring '11 term at Nicholls State.

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Chapter 12 Practice Problems Blank - 1. Data for September...

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