The service division of Raney Industries reported the following results for 2020. Sales $476,000 Variable costs...
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The service division of Raney Industries reported the following results for 2020. Sales $476,000 Variable costs 285,600 67,550 585,000 Controllable fixed costs Average operating assets Management is considering the following independent courses of action in 2021 in order to maximize the return on investment for this division. 1. Reduce average operating assets by $73,125, with no change in controllable margin. 2. Increase sales $105,300, with no change in the contribution margin percentage. Your answer is partially correct. Try again. Compute the controllable margin and the return on investment for 2020. Controllable margin Return on investment for 2020 LINK TO TEXT X 122850 21.10 % Your answer is partially correct. Try again. Compute the controllable margin and the expected return on investment for 2021 for each proposed alternative. (Round ROI to 1 decimal place, e.g. 1.5%.) Your answer is partially correct. Try again. Compute the controllable margin and the expected return on investment for 2021 for each proposed alternative. (Round ROI to 1 decimal place, e.g. 1.5%.) The controllable margin Alternative 1 LINK TO TEXT 122850 Alternative 2 The expected return on investment Click if you would like to Show Work for this question: Open Show Work 21.10 % 122850 23.90 % The service division of Raney Industries reported the following results for 2020. Sales $476,000 Variable costs 285,600 67,550 585,000 Controllable fixed costs Average operating assets Management is considering the following independent courses of action in 2021 in order to maximize the return on investment for this division. 1. Reduce average operating assets by $73,125, with no change in controllable margin. 2. Increase sales $105,300, with no change in the contribution margin percentage. Your answer is partially correct. Try again. Compute the controllable margin and the return on investment for 2020. Controllable margin Return on investment for 2020 LINK TO TEXT X 122850 21.10 % Your answer is partially correct. Try again. Compute the controllable margin and the expected return on investment for 2021 for each proposed alternative. (Round ROI to 1 decimal place, e.g. 1.5%.) Your answer is partially correct. Try again. Compute the controllable margin and the expected return on investment for 2021 for each proposed alternative. (Round ROI to 1 decimal place, e.g. 1.5%.) The controllable margin Alternative 1 LINK TO TEXT 122850 Alternative 2 The expected return on investment Click if you would like to Show Work for this question: Open Show Work 21.10 % 122850 23.90 %
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Controllable margin It refers to the excess of contribution margin over the controllable fixed costs ... View the full answer
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Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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