Calculate return on investment for each segment

Assignment Help Accounting Basics
Reference no: EM131754147

1. Two segments (Mountain Bike and Road Bike) showed the following data for the most recent year:

  Mountain Bike Road Bike
Contribution to indirect expenses 840,000 504,000
Assets with directly used by and identified with the segment 2,520,000 2,184,000
Sales 3,360,000 6,720,000

a. Calculate return on investment for each segment in the most direct manner. b. Calculate return on investment using the margin and turnover components.

2.  Given the following data, prepare a schedule that shows contribution margin, contribution to indirect expenses, and net income of the Sharks Division of Hockey, Inc.:

Direct fixed expenses $ 425,000

Indirect fixed expenses 325,500

Sales 2,400,000

Variable expenses 1,800,000

What would be the effect on the company income if the segment was eliminated?

3.  Three segments (A, B, and C) of Trump Enterprises have net sales of $500,000, $300,000, and $200,000, respectively. A decision is made to allocate the pool of $50,000 of administrative overhead expenses of the home office to the segments, using net sales as the basis for allocation.

a. How much of the $50,000 should be allocated to each segment?

b. If Segment C is eliminated, how much of the $50,000 will be allocated to A and B?

Reference no: EM131754147

Questions Cloud

Discuss preferred and common stockholders : How is the dividend allocated between preferred and common stockholders
Compute probability that the chain will be absorbed : Consider a branching process as defined in 1.55, in which each family has a number of children that follows a shifted geometric distribution.
Challenges of creating implementation plan for innovation : How did the team’s dynamics contribute to both the success and the challenges of creating an implementation plan for your innovation?
Five cards are different values : Suppose we are dealt five cards from an ordinary 52-card deck. What is the probability that (a) we get all four aces, plus the king of spades?
Calculate return on investment for each segment : Calculate return on investment for each segment in the most direct manner
Probability that the repair takes more than two hours : Suppose that the time to repair a machine is exponentially distributed random variable with mean 2.
Business strategy such as pricing-specialization-marketing : Choose any business and write about their business strategy such as pricing, specialization, marketing, and customer service.
Working productively toward goal is highly motivating : According to the making progress principle, a feeling of working productively toward a goal is highly motivating.
Demonstrates understanding of aspect of religious tradition : Create a project which demonstrates an understanding of one aspect of a religious tradition or aspects of a comparative study of religious traditions.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd