Prepare division performance report

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Questions -

Q1. Cushions ltd had three divisions: Hard, Medium and Soft. Corporate expenses of $36,000 are allocated to divisions based on sales. Data for the current quarter are as follows:

 

Sales

Direct Variable costs

Direct fixed costs

Hard

36,000

21,600

6,000

Medium

60,000

30,000

8,400

Soft

48,000

24,000

12,000

Required - Prepare division performance report.

Q2. The following data relate to the Chinese Division of Chee Incorporated.

Sales 180,000

Direct variables costs 60,000

Direct fixed costs 40,000

Average invested capital 200,000

Require rate of return 20%

Required - A. Determine the return on investment.

B. Determine the residual income.

Reference no: EM132673096

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