Required information [The following information applies to the questions displayed below] A manufacturer reports the following for two of its divisions for a recent month. Average assets Sales Income Beverage Division Income Less Target income Residual income $ 8,200 3,480 888 Cheese Division $ 14,800 5,640 1,280 Assume that each of the company's divisions has a target income at 7% of average assets. Compute residual income for each division. Beverage Cheese

Required information [The following information applies to the questions displayed below] A manufacturer reports the following for two of its divisions for a recent month. Average assets Sales Income Beverage Division Income Less Target income Residual income $ 8,200 3,480 888 Cheese Division $ 14,800 5,640 1,280 Assume that each of the company's divisions has a target income at 7% of average assets. Compute residual income for each division. Beverage Cheese

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 37P

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Holo Company reported the following financial numbers for one of its divisions for the year; average total assets of $5,910,000; sales of $5,485,000; cost of goods sold of $3,280,000; and operating expenses of $1,158,000. Assume a target income of 14% of average invested assets. Compute residual income for the division: Multiple Choice $146,580. $279,100. $146,627. $219,600. $104,700.
Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] A manufacturer reports the following for two of its divisions for a recent month. Cheese Division $ 14,800 5,640 1,280 Beverage Division Average assets Sales Income $ 8,200 3,480 888 Exercise 22-13 (Algo) Residual income LO A1 Assume that each of the company's divisions has a target income at 7% of average assets. Compute residual income for each division. Target Income Beverage Cheese Targeted return Target income Residual Income Beverage Cheese Residual income
[The following information applies to the questions displayed below.] A manufacturer reports the following for two of its divisions for a recent month. Beverage Division Cheese Division Average assets $5,000 $ 10,000 Sales 3,000 5,000 Income 600 800 Assume that each of the company's divisions has a target income at 7% of average assets. Compute residual income for each division.
Carter Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,200,000; sales of $4,625,000; cost of goods sold of $2,650,000; and operating expenses of $1,472,000. Assume a target income of 10% of average invested assets. Compute residual income for the division: Multiple Choice $197,500. $50,300. () $83,000. $40,500. $93,000.
Using the data below for the Ace Guitar Company: Sales Cost of goods sold Selling expenses Support department expenses: Purchasing Payroll accounting A Region A Region Operating Income B Region Operating Income $544,000 206,700 130,600 B Region $ $816,000 310,100 195,800 Allocate support department expenses proportional to the sales of each region. Determine the divisional operating income for the A and B regions. For interim calculations, round percentages to two decimal places and all other amounts to the nearest whole dollar. $228,500 152,300
[The following information applies to the questions displayed below.] A food manufacturer reports the following for two of its divisions for a recent year. Beverage Cheese ($ millions) Division Division Invested assets, beginning Invested assets, ending $2,676 2,600 2,688 $4,469 4,407 3,932 641 Sales Operating income 356 Assume that each of the company's divisions has a required rate of return of 7%. Compute residual income for each division. (Enter your answers in millions.) ($ millions) Beverage Cheese Targeted return Target income Residual Income Beverage Cheese Residual income
Dacker Products is a division of a major corporation. The following data are for the most recent year of operations: Sales$ 37,880,000Net operating income$ 3,508,960Average operating assets$ 9,400,000The company's minimum required rate of return14% The division's residual income is closest to:
1. Using the data below for Ace Guitar Company: Region A Region B Sales $571,500 $698,500 Cost of goods sold 217,200 265,400 Selling expenses 137,200 167,600 Service department expenses Purchasing $213,400 Payroll accounting 142,200 Allocate service department expenses proportionally to the sales of each region, determine the divisional income from operations for the Regions A and B. For interim calculations, round the percentages to one decimal place. Region A $ Region B $
Bentz Co. has two divisions, A and B. Invested assets and condensed income statement data for each division for the year ended December 31 are as follows: Division A Division B Revenues $190,000 $125,500 Operating expenses 112,500 92,750 Support department allocations 29,500 12,625 Invested assets 225,000 99,000 a. Prepare condensed income statements for the past year for each division. b. Using the DuPont formula, determine the profit margin, investment turnover, and return on investment (ROI) for each division. Round the profit margin percentage to two decimal places, the investment turnover to four decimal places, and the return on investment to one decimal place.
What amount should be disclosed as Dae-su's profit for the current year? * Dae-su Company has four manufacturing divisions, each of which has been determined to be a reportable segment. Common costs are appropriately allocated on the basis of each division's sales in relation to Dae-su's aggregate sales. Dae-su's 4th division accounted for 40% of Dae-su's total sales in the current year. For the current year, 4th division had sales of P8,000,000 and traceable costs of P4,800,000. In addition, the 4th division incurred interest expense of P640,000. In the current year, Dae-su incurred costs of P800,000 that were not directly traceable to any of the divisions. It is an entity policy that interest expense is included in the measure of profit or loss that is reviewed by the chief operating decision maker. O 3,200,000 O 3,000,000 O 2,880,000 O 2,240,000
Dacker Products is a division of a major corporation. The following data are for the most recent year of operations: Sales Net operating income Average operating assets $ 36,880,000 $ 3,008,960 $ 8,400,000 The company's minimum required rate of return The division's residual income is closest to: Multiple Choice $4,268,960 $(3,227,840) ○ $3,008,960 ○ $1,748,960 $ 15%
Required information [The following information applies to the questions displayed below.] ACME Food Manufacturing reports the following for two of its divisions for a recent year. ($ millions) Beverage Division Cheese Division Invested assets, beginning Invested assets, ending $2,675 2,599 2,687 $4,468 4,406 3,931 Sales Operating income 355 640 Assume that each of the company's divisions has a required rate of return of 8%. Compute residual income for each division. (Enter your answers in millions.) ($ millions) Beverage Cheese Targeted return Target income Residual Income Beverage Cheese Residual income