Question: Any help regarding this problem would be much appreciated. Thanks in advance! B-22.02 JRTC is evaluating results for three separate business segments under his control.

Any help regarding this problem would be much appreciated. Thanks in advance!

Any help regarding this problem would be much appreciated. Thanks in advance!

B-22.02 JRTC is evaluating results for three separate business segments under his control. Selected financial information for each segment follows: Operating Income Sales Segment A $ 2,000,000 $ 100,000 Average Assets $ 2,500,000 Segment B 3,500,000 450,000 6,000,000 Segment C 1,600,000 160,000 2,100,000 Rank order the three segments based on "margin," "turnover," and "return on investment." How is it possible that the rankings differ based on which evaluative model is used? Name: Date: B-22.02 Section: Operating Income Sales Segment A $ 2,000,000 $ 100,000 Average Assets $ 2,500,000 Segment B 3,500,000 450,000 6,000,000 Segment C 1,600,000 160,000 2,100,000 Margin (as used in ROI ) Segment A Segment B Segment C Segment A Segment B Segment C Segment A Segment B Segment C Turnover (as used in ROI) ROI B-22.03 Jiffy Print is a retailer of printers and ink cartridges. The printers carry a low profit margin and the ink cartridges a very high margin. Following is an aggregated budgeted performance plan for 2015. Budgeted Performance Report All Stores For the Year Ending December 31, 2015 Sales Printers $ Cartridges Total sales 4,500,000 4,500,000 $ 9,000,000 $ 4,000,000 Less: Variable expenses Printers Cartridges 1,500,000 Total variable expenses $ 5,500,000 Contribution margin $ 3,500,000 Traceable fixed costs Location margin 1,550,000 $ Common fixed costs Stores margin 1,950,000 1,400,000 $ 550,000 Although total sales met expectations for the year, management is upset that the targeted margins were not achieved. Following is the "store by store" actual performance report. Evaluate the detailed data and write a paragraph explaining the loss. If each store has a positive margin, as shown in the following report, why is management upset? (Response should be less than 75 words long) B-22.03 Actual Performance Report All Stores For the Year Ending December 31, 2015 Store A Store B Store C Sales Printers $ Cartridges Total sales 2,000,000 $ 500,000 2,500,000 $ 2,000,000 1,000,000 1,000,000 $ 2,500,000 $ 4,500,000 $ 2,000,000 $ 1,777,778 $ 2,222,222 $ 888,889 Less: Variable expenses Printers Cartridges 166,667 666,667 333,333 Total variable expenses $ 1,944,444 $ 2,888,889 $ 1,222,222 Contribution margin $ 555,556 $ 1,611,111 $ 777,778 Traceable fixed costs Location margin 450,000 $ 105,556 600,000 $ 1,011,111 500,000 $ 277,778 I-23.04 Hardee's Publishing's four productive units are supported by three service departments: Maintenance, Food services, and Information technology. Maintenance costs are allocated to other units based on square footage, food services costs are allocated to other units based on number of employees, and information technology costs are allocated to other units based on number of PCs in use. Below is a listing of data for each unit: Square Footage Employees PCs in Use Design 2,400 4 6 Printing 6,000 8 9 1,800,000 Binding 3,000 3 2 650,000 Warehousing 9,000 3 3 180,000 Maintenance 1,000 4 1 225,000 Food services 3,000 2 1 260,000 Information technology 1,000 3 6 190,000 Direct Costs $ 400,000 Prepare a cost allocation of his or her costs to other units using both the direct and step allocation approach. It is agreed that the step allocations would occur in the following order: (a) Maintenance, (b) Food services, and (c) Information technology. Name: Date: I-23.04 Section: Direct Allocation: Maintenance Cost incurred Informatio n technolog y ### ### Food services ### Design Printing ### ### Maintenance - - ### - ### - ### - Food services - - ### - ### - ### - IT - - Total cost Maintenance allocations: Food services allocations: IT allocations: Step Allocation: $ - $ - $ - $ - $ - Name: Date: I-23.04 Section: Maintenance Cost incurred Informatio n technolog y ### ### Food services ### Design Printing ### ### Maintenance - - - - Food services - - - - - IT - - - - - Total cost Maintenance allocations: Food services allocations: IT allocations: $ - $ - $ - $ - ### - $ - Name: Date: Section: Warehousing Binding ### ### ### - - ### - - $ - $ - I-23.04 Name: Date: Section: Warehousing Binding ### $ ### - - - - - - - $ - I-23.04

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