Decentralization, 12 points. Supply the missing data for the following table: Sales Operating Income Operating Assets...

 

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Decentralization, 12 points. Supply the missing data for the following table: Sales Operating Income Operating Assets Return on Investment Required rate of return Residual Income Division A $60,000 30,000 15% 10% Sales Operating Income Operating Assets Minimum rate of returr Production Variable Costs Fixed Overhead Variable Selling Expenses Fixed Administrative Expenses What should the transfer price be if the company uses: Market Price Variable Cost 120,000 units $120,000 $60,000 $30,000 $20,000 Consider the following data for three divisions of a conglomerate: ABC Division B $75,000 25,000 10% 5,000 Division A manufactures batteries that it sells primarily to Division B. Half the batteries manufactured by Division A were sold to outside companies at a price of $2 each. The remaining batteries were transferred to Division B. The cost data are given below. Division A Division B Division C $140,000 $180,000 $250,000 5,000 63,000 14,400 20,000 35,000 90,000 10% 19% 20% Calculate the residual income for each division. 100 Division C $100,000 $50,000 20% Each division is provided with an investment opportunity that could produce a 20% ROI. Which division would not accept the investment? Decentralization, 12 points. Supply the missing data for the following table: Sales Operating Income Operating Assets Return on Investment Required rate of return Residual Income Division A $60,000 30,000 15% 10% Sales Operating Income Operating Assets Minimum rate of returr Production Variable Costs Fixed Overhead Variable Selling Expenses Fixed Administrative Expenses What should the transfer price be if the company uses: Market Price Variable Cost 120,000 units $120,000 $60,000 $30,000 $20,000 Consider the following data for three divisions of a conglomerate: ABC Division B $75,000 25,000 10% 5,000 Division A manufactures batteries that it sells primarily to Division B. Half the batteries manufactured by Division A were sold to outside companies at a price of $2 each. The remaining batteries were transferred to Division B. The cost data are given below. Division A Division B Division C $140,000 $180,000 $250,000 5,000 63,000 14,400 20,000 35,000 90,000 10% 19% 20% Calculate the residual income for each division. 100 Division C $100,000 $50,000 20% Each division is provided with an investment opportunity that could produce a 20% ROI. Which division would not accept the investment?

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