1. Discuss whether the manager of Bell Division should be evaluated only on ROI? 2. Provide two (2) reasons why ROI, RI, and EVA may be inappropriate measures of performance.
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1. Discuss whether the manager of Bell Division should be evaluated only on ROI?
2. Provide two (2) reasons why ROI, RI, and EVA may be inappropriate measures of performance.
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- A company has following details for this yearDetails Total sales($) Total cost($) Details Total sales($) Total cost($)Year ended 31/12/2018 35,78,998 25,89,709Year ended 31/12/2019 48,90,742 31,67,984 Calculate P/V ratio, Fixed cost, break even sales, Margin of safety 2018/2019, Variable cost 2018/2019and percent of fixed cost 2018/201964 The portion of the functional income statements of Brief Company for 2021 and 2020 are presented below: 2021 2020 Sales P890,000 P800,000 Cost of goods sold 530,000 450,000 Gross margin 360,000 350,000 Assuming that effective January of 2021 the unit cost is higher by 6 percent, calculate the change in sales due to change in volume rounded to nearest thousands. Group of answer choices P85,000 Favorable P88,000 Favorable P85,000 Unfavorable P88,000 UnfavorableCandlemania, Inc. Financial Projections - 2021 Inputs: Section A: Section B: Section C: 2020 Actual 30,000 Change Factors 2021 What-If? 0% 0% 0% 0% 0% 0% 0% 2021 What-If? Sales in units ? Sales price per unit Direct materials cost per unit Direct labor cost per unit Variable overhead cost per unit | $ 120.00 ? 18.00 ? 16.00 ? 22.00 ? Fixed costs 2$ 500,000 ? Target Income Income Projections: $4 700,000 2020 Actual Sales ? ? Less variable expenses: Direct materials ? ? Direct labor ? Variable overhead ? ? Total variable expenses ? ? Contribution margin Less fixed expenses ? ? ? ? Income before taxes Contribution margin per unit Contribution margin ratio ? ? ? ? Break-even sales in units ? ? Break-even sales in $$ ? ? Margin of safety in units Margin of safety in sales $$ Sales in units to yield target income ? ? ? ? ?
- Final Exam (Fall 2020) -/6 > Question 22 of 50 View Policies Current Attempt in Progress Sheridan Corporation's Perfume division has a segment margin is $92000 for the current reporting period. Total assets at the beginning of the period were $807000 and $907o00 at the end of the period. What is the division's ROI? O 9.42% 10.74% O 11.40% O 5.37% Attempts: 0 of 1 used Submit Answer Save for Later MacBook Air esc 80 F3 888 F1 F4 44 トII F6 - 19 F8 @ #3 24 % & * 6. 7 8 9. W T Y. A D F H K く○2018 2019 Output (units) 120,000 126,000 Selling price per unit $25.00 $25.00 Input quantities: Materials (pounds) 6,000 6,000 Labor (hours) 4,800 4,875 Input prices: Materials (per pound) $5.00 $5.50 Labor (per hour) 7.00 7.50 By how much did profits change as a result of changes in productivity related to labor? a. $1,650.00 increase b. $1,237.50 decrease c. $1,237.50 increase d. $1,650.00 decreaseSales mix and margin of safety Use the data from E11-20. assume that 31.500 units of digital game players and 13.500 computer tablets were sold in the current year. Assuming no change in the sales mix, determine the following for Northwest Technology Inc. Round to one decimal place. Margin of safely for game players expressed as (a) units sold, (b) sales dollars, and (c) a percentage.
- Required Supply the missing information in the following table for Vernon Company. (Do not round intermediate calculations. Round "ROI" answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).) Sales $369,600 ROI % Operating assets Operating income Turnover 2.1 Residual income Operating profit margin 14 % Desired rate of return 17 %Wildhorse Company has the following information available for September 2022. Unit selling price of video game consoles Unit variable costs Total fixed costs Units sold $470 $329 $50,760 600View Policies Current Attempt in Progress rt For its three ivestment centers, Gerrard Company accumulates the following data: II $1,900,000 $4075,000 $4,069,00 Sales Controllable margin 1,330,000 2,037,500 3,662,10 Average operating assets 5,068,000 7,993,000 12,028,00 The centers expect the following changes in the next year: (I) increase sales 14%; (II) decrease costs $376,000; (III) decrease average operating assets $491,000. Compute the expected return on investment (ROI) for each center. Assume center I has a controllable margin percentage of 70%. (Round ROI to 1 decimal place, e.g. 1.5%.) The expected return on investment
- PROBLEM 14: MMM Company started operations in 2019. The following data are abstractedfrom the company’s production and sales records: 2019 2020 2021 Number of units produced 120,000 116,250 101,250 Number of units sold 75,000 108,750 97,500 Unit production cost P 4.50 P 5.20 P 5.80 Sales revenue 600,000 900,000 975,000 Using the FIFO cost flow assumption, the gross profit for the year ended December 31, 2021 is:Data table Beginning inventory, January 1, 2020 Ending inventory, December 31, 2020 2020 sales Selling price (to distributor) Variable manufacturing cost per unit, including direct materials Variable operating (marketing) cost per unit sold Fixed manufacturing costs Denominator-level machine-hours Standard production rate Fixed operating (marketing) costs 86,000 units 35,000 units 345,000 units $22.50 per unit $5.70 per unit 4 $1.60 per unit sold $1,372,500 6,100 50 units per machine-hour $1,090,000 XCandlemania, Inc. is a maker of scented candles in decorative containers. During 2020, the company sold 30,000 candles at a sales price of $120 each. Following are the 2022 financial results: Candlemania, Inc. Contribution Format Income Statement For the Year 2022 $ 3,600,000 Sales Less variable costs: Direct mate 540,000 Direct laboi 600,000 Variable ov 660,000 Total variable costs Contribution Margin Less fixed costs: 1,800,000 $ 1,800,000 500,000 $ 1,300,000 Income before taxes You are the top managerial accountant at Candlemania, and are scheduled to meet with the company's CEO next week to discuss the financial outlook for 2023. In particular, the CEO will want to know what steps the company might take to improve its 2022 income performance. You expect to be asked questions about the impact that various changes in sales price, sales volume, and costs would have on the company's contribution margin, breakeven point, margin of safety, and income. In addition, the CEO is likely to…