Macro Data Corporation's three divisions had the following operating data during the year: Required: 1. Compute the

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Macro Data Corporation's three divisions had the following operating data during the year:


Fax Machine Calculator Computer Revenue. Variable costs Fixed costs. Total assets $100,000 $150,000 90,000 $200,000 45,0


Required:
1. Compute the contribution margin for each division.
2. Compute the segment margin for each division (assume that all fixed costs are direct to each division).
3. Compute the ROI for each division.
4. Which division had the highest profit margin ratio?
5. Interpretive Question: Which division had the best performance in 2012?Why?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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