User Account

All Pages

What would be the brewery return on investment

Assignment Help Managerial Accounting
Reference no: EM132521643

Return on Investment Analysis

Funky Buddha Brewery is a regional brewery. The Operations Manager has the authorization to make investment decisions as needed and is evaluated on return on investment (ROI).

Funky Buddha Brewery reported the following results for the year:

Sales                                $600,000

Operating Income                  $15,000

Average Operating Assets       $70,000

Required:

Question 1: Compute the brewery's ROI.

Question 2: Here are three (3) individual situations. Solve each separately.

a. Assume the Operations Manager can increase sales by $ 80 000 and as a result operating income increases by $10 000. Further assume this is possible without any increase in operating assets. What would be the brewery's ROI?

b. Assume the Operations Manager can reduce expenses by $ 5000, without any change in sales or operating assets. What would be the brewery's ROI?

c. Assume the Operations Manager can reduce the operating assets by $20 000 without any change in sales or operating income. What would be the brewery's ROI?

Question 3: From the three independent scenarios, which would you select and why?

Question 4: What are three (3) disadvantages of using ROI?

Reference no: EM132521643

Questions Cloud

Video compilation of student events on dvd : In order to sell more yearbooks the yearbook club provides a video compilation of student events on DVD.
Find what is the maximum amount the company willing to pay : Find What is the maximum amount the company should be willing to pay an outside supplier per unit for the part if the supplier commits to supplying.
Terrorism effects on local bussiness : You have been hired by a large company that wishes to expand its operations overseas. The company is concerned about terrorism,
Discussed public opinion : We discussed public opinion, including the evaluation of public opinion polls. As we discussed, critically evaluating and analyzing poll results
What would be the brewery return on investment : Assume the Operations Manager can reduce expenses by $ 5000, without any change in sales or operating assets. What would be the brewery's ROI?
What limits and guidelines did the children identify : What is the activity and why did you choose it and How many children participated and what was their age and stage of development
Devise a plan to address the bicycle thefts in given area : The theft of bicycles is a substantial social problem in the U.S. The FBI reports over 200,000 bicycle thefts each year, a number that likely severely.
Different categories of unethical police behavior : Discuss the different categories of unethical police behavior and provide an example of each. How do these unethical actions impact the policing profession
Conduct a needs assessment on the police department : Conduct a needs assessment on the police department of the city you chose to determine what the goals and vision should be for the police department.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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