Compute the ROI of each division stated

Assignment Help Managerial Accounting
Reference no: EM133076134

Question - Company Ltd. has two different product lines, cupcakes and cookies. The most recent financial information indicated total cupcake sales of $300,000 and profit of $15,000. This division had $100,000 of average operating assets throughout the year. Total cookie sales were $500,000 with profit of $50,000. The cookie product line had average operating assets of $250,000. The company has indicated that the minimum required return for any product line it offers is 16%.

Required -

a) Compute the ROI of each division stated in terms of margin and turnover.

b) Which division is doing better and why?

Reference no: EM133076134

Questions Cloud

Quantitative asset management firm : Joyce Byers is a recent FRM who was hired as a risk manager for a quantitative asset management firm. She has been asked by a senior portfolio manager at the fi
Should Richard Company buy the flanges from other company : Variable Manufacturing Overhead: $2.40. Should Richard Company buy the flanges from the other company or continue to make the flanges themselves
What is the expected net cash flow : What is the expected net cash flow from a bank which earns $31 million per month from interest on loans and has $1 million in CDs maturing this month, with $23
Compute the anticipated value of the dividends : a. Compute the anticipated value of the dividends for the next four years. (Do not round intermediate calculations. Round your final answers to 2 decimal places
Compute the ROI of each division stated : The most recent financial information indicated total cupcake sales of $300,000 and profit of $15,000. Compute the ROI of each division stated
What is the firm cash conversion cycle : 1. Brothers Breads has the following data. What is the firm's cash conversion cycle?
What is her basis in her Bombay stock at the end of the year : During the year, Nicolette (a 40 percent shareholder) received a $20,000 distribution. What is her basis in her Bombay stock at the end of the year
Construct the covariance matrix : Given the following information from the Partners Health case study, please perform the following tasks:
Compute residual income for the division : Our Company reported the following financial numbers for one of its divisions for the year; Compute residual income for the division

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Compute the net present value of the proposed project is

Compute The net present value of the proposed project is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

  How much income is reported under absorption costing

6,000 units in inventory,Income calculated under variable costing is determined to be $330,000. How much income is reported under absorption costing?

  Which actions would increase return on investment

If budgeted expenses were $100 and actual expenses were $90 there would be? Which actions would increase return on investment

  Calculate sales needed to achieve a profit

Calculate sales needed to achieve a profit of $1,800,000, assuming the current mix. (Round to the nearest dollar.)

  Determine the ending inventory under variable costing

Fixed costs are: $294000 manufacturing overhead, and $98000 selling and administrative expenses. Determine the ending inventory under variable costing

  What is the average number of days accounts receivable

A company has sales of $3,680,000 per year. Its average net accounts receivable balance is $920,000. What is the average number of days accounts receivable

  Determine the nonvalue-added cost of each activity

Determine the nonvalue-added cost of each activity. A benchmarking study reveals that the most efficient level for Lemmons would use 54,000 welding hours

  Calculate a predetermined overhead rate on number of units

Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year.

  Balance sheet reported total assets

On that date, the financial statements were prepared. The balance sheet reported total assets of $56,150.00 and total stockholders equity of $38,300.

  Find absorption costing income is expected to be

If production is higher than sales, then absorption costing income is expected to be? Incomparable with variable costing income

  Determine the fixed component of packaging costs

Martinez and Company is trying to determine the cost behaviour of their packaging costs. Determine the fixed component of packaging costs

  Find the plant-wide manufacturing overhead rate

Cooper's Bags Company uses machine hours as the cost driver for manufacturing overhead costs. Find the plant-wide manufacturing overhead rate

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