Ayayai Company manufactures a variety of tools and industrial equipment. The company operates through three divisions....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Ayayai Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2022, and relevant budget data are as follows. Sales Variable cost of goods sold Variable selling and administrative expenses Controllable fixed cost of goods sold Controllable fixed selling and administrative expenses Actual $1,399,000 670,000 124,000 169,000 79,000 Comparison with Budget $100,000 favorable 54,000 unfavorable 24,000 unfavorable On target On target Average operating assets for the year for the Home Division were $2,000,000, which was also the budgeted amount. Compute the expected ROI in 2022 for the Home Division, assuming the following independent changes to actual data. (Round ROI to 2 decimal places, e.g. 1.57%.) (1) (2) (3) Variable selling and administrative expenses are decreased by 6%. Average operating assets are decreased by 12.5%. Sales are increased by $199,000, and this increase is expected to increase contribution margin by $84,000. The expected ROI % % % Ayayai Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2022, and relevant budget data are as follows. Sales Variable cost of goods sold Variable selling and administrative expenses Controllable fixed cost of goods sold Controllable fixed selling and administrative expenses Actual $1,399,000 670,000 124,000 169,000 79,000 Comparison with Budget $100,000 favorable 54,000 unfavorable 24,000 unfavorable On target On target Average operating assets for the year for the Home Division were $2,000,000, which was also the budgeted amount. Compute the expected ROI in 2022 for the Home Division, assuming the following independent changes to actual data. (Round ROI to 2 decimal places, e.g. 1.57%.) (1) (2) (3) Variable selling and administrative expenses are decreased by 6%. Average operating assets are decreased by 12.5%. Sales are increased by $199,000, and this increase is expected to increase contribution margin by $84,000. The expected ROI % % %
Expert Answer:
Related Book For
Accounting Tools for business decision making
ISBN: 978-0470095461
4th Edition
Authors: kimmel, weygandt, kieso
Posted Date:
Students also viewed these accounting questions
-
Optimus Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for...
-
Dinkle Manufacturing Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home...
-
Suppan Manufacturing Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home...
-
i) Starbucks launched its prepaid (debit) Starbucks Card in November 2001. The card, which holds between $5 and $500 can be used at any Starbucks location. Suppose Starbucks management wants to study...
-
A refrigerator operates between temperatures of 296 and 275 K. What would be its maximum coefficient of performance?
-
In a cylindrical chamber that initially has a volume of \(2.25 \mathrm{~L}\), a sample of helium gas is at equilibrium at \(3.20 \mathrm{~atm}\) and \(85.0^{\circ} \mathrm{C}\). The gas is slowly...
-
You need to use a long solenoid to produce a magnetic field of magnitude \(0.070 \mathrm{~T}\). If the maximum current you are able to run through the windings is \(20 \mathrm{~A}\), what is the...
-
Manual Company sells goods to Nolan Company during 2012. It offers Nolan the following rebates based on total sales to Nolan. If total sales to Nolan are 10,000 units, it will grant a rebate of 2%....
-
4 16. The mean and variance of a binomial distribution area and respectively. If P(X = 1) = then P(X = 4 or 5) is equal to: 243 (a) 1/159 64 (b) $ 16 (c) 81 925 145 (d) 27 243 17. Let E1, E2, E3 be...
-
In 1879, A.A. Michelson measured the velocity of light in air using a modification of a method proposed by the French physicist Foucault. Twenty of these measurements are in table 6E.27 (the value...
-
Write a C program to perform the following. Read the name of an ftp command, identify whether it is a valid command or not and print a line indicating the command is valid or invalid. The list of...
-
When constructing a bridge for dual carriage to carry pedestrians, selecting the most appropriate construction method will rely on a number of factors, such as the bridge's length, site conditions,...
-
What is the presenting problem, and what are the underlying problems that you are uncovering in the situation where the client organization is trying to figure out "how to change the organization to...
-
1.) How much of the office duties will you handle yourself? Contract out? 2.) Will you keep physical records or do everything electronically? 3.) How will you determine the appropriate fee structure?...
-
Assume r* = 2%; inflation in year 1 = 2%; inflation in year 2 = 4%; MRP = 0.1%(t). What is the yield on a 2-year Treasury?
-
14 1. Using a binomial interest rate tree, fill out the table below. (100 points) 15 The first four columns are inputs. P0.5 is the price of a six-month zero-coupon bond. P1 and CR 16 respectively,...
-
Premium Company is considering the introduction of a new product that requires to purchase of a new industrial oven. The industrial size oven will cost $960,000 and will be used for 5 years. The...
-
X-1 Find the domain of the function f(x) : x 1 2 - O (-00, -1) U (-1, ) O (-00, 1) U (1, ) O -00, -1) U (-1, 1) U (1, 0) O (- 1, 1)
-
In May 2012, the budget committee of Grand Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June. 1. Expected sales: June $500,000, July $600,000....
-
Gwyn Wallander is the new owner of Bennett Co. She has heard about internal control but is not clear about its importance for her business. Explain to Gwyn the four purposes of internal control, and...
-
On April 1, 2011, CMV Corp. issued $600,000, 8%, 5-year bonds at face value. The bonds were dated April 1, 2011, and pay interest annually on April 1. Financial statements are prepared annually on...
-
Two radio stations have the same power output from their antennas. One broadcasts AM at a frequency of \(1000 \mathrm{kHz}\) and one broadcasts FM at a frequency of \(100 \mathrm{MHz}\). Which...
-
A paramecium is covered with motile hairs called cilia that propel it at a speed of \(1 \mathrm{~mm} / \mathrm{s}\). If the paramecium has a volume of \(2 \times 10^{-13} \mathrm{~m}^{3}\) and a...
-
How many photons does a \(5.0 \mathrm{~mW}\) helium-neon laser \((\lambda=633 \mathrm{~nm})\) emit in 1 second? A. \(1.2 \times 10^{19}\) B. \(4.0 \times 10^{18}\) C. \(8.0 \times 10^{16}\) D. \(1.6...
Study smarter with the SolutionInn App