Solution-Compute the controllable margin

Compute the controllable margin

Assignment Help Cost Accounting

Reference no: EM13513423

The service division of Metro Industries reported the following results for 2010.

Sales	$400,000
Variable costs	320,000
Controllable fixed costs	40,800
Average operating assets	280,000

Management is considering the following independent courses of action in 2011 in

order to maximize the return on investment for this division.

1. Reduce average operating assets by $80,000, with no change in controllable margin.

2. Increase sales $80,000, with no change in the contribution margin percentage.

(a) Compute the controllable margin and the return on investment for 2010.

(b) Compute the controllable margin and the expected return on investment for each proposed alternative.

Reference no: EM13513423

Questions Cloud

What is the final velocity of the block : A 0.016-kg bullet traveling at 203.6 m/s east hits a motionless 1.9-kg block and bounces off it, retracing its original path with a velocity of 100.7 m/s west. What is the final velocity of the block

Aspirin c9h804 is produced from salicyclic acid : Aspirin c9h804 is produced from salicyclic acid,c7h6o3 and acetic anhydride,c4h6o3.what quantity of pure c7h6o3 would be needed to manufacture 1500 metric tonnes of aspirin..th yield for this process is 91%+

Determine cash received on collections of sales : Determine cash received on collections of sales - The Feiner Corporation showed sales (on account) on its income statement of $200,000 for 19X1.

Find the speed of the pitch : A pitcher is employing a ballistic pendulum to determine the speed of his fastball. A 3.3 kg lump of clay is suspended from a cord 2.0 m long, find the speed of the pitch

Compute the controllable margin : Compute the controllable margin and the expected return on investment for each proposed alternative.

Define the synthesis reaction of tert-butanol : What are the required steps in the synthesis reaction of tert-butanol only using Ethanol (CH3CH2OH) and Methane (CH4)

Determine the amounts paid for wages and interest : It also had in its Interest Payable account a beginning balance of $100,000, an ending balance of $125,000, and interest expense of $50,000. Determine the amounts paid for wages and interest.

Disscuss the rational behind the iconophiles : Disscuss the rational behind the iconophiles and iconoclasts relative to the Medieval Message. Which do you believe is more in line with Christian doctrine? What role do you believe that image plays during this time period?

Nitrogen causes deoxygenation of the solution : Explain why bubbling a solution with an inert gas such as argon or nitrogen causes deoxygenation of the solution?

User Account

All Pages

Compute the controllable margin

Reference no: EM13513423

Reference no: EM13513423

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT