Nick Limited of England has two regions of operation: London and Manchester. Selected data on the...
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Nick Limited of England has two regions of operation: London and Manchester. Selected data on the two divisions follow: Division report London 4,500 $20 $12 $30,000 Unit Sales Selling price Variable cost per unit Fixed expenses Manchester 10,000 $20 $12 $68,000 Additional information: - Total fixed common costs related to operating and general management per month are $15,000 - The general cost allocation ratio for each product is fixed over the years for London division is 40%, for Manchester is 60%. - The company's average used assets are expected to be stable at $700,000 and the expected ROI is 22%. Required: 1. Prepare detailed segment reports for the fiscal month for each division and the whole company. (1 mark) 2. What is the Sales revenue to achieve a margin of safety of $50,000? Assuming the CM ratio and the fixed costs remain unchanged. (0.5 mark) 3. Calculate ROI and RI of the whole company. (1 mark) Nick Limited of England has two regions of operation: London and Manchester. Selected data on the two divisions follow: Division report London 4,500 $20 $12 $30,000 Unit Sales Selling price Variable cost per unit Fixed expenses Manchester 10,000 $20 $12 $68,000 Additional information: - Total fixed common costs related to operating and general management per month are $15,000 - The general cost allocation ratio for each product is fixed over the years for London division is 40%, for Manchester is 60%. - The company's average used assets are expected to be stable at $700,000 and the expected ROI is 22%. Required: 1. Prepare detailed segment reports for the fiscal month for each division and the whole company. (1 mark) 2. What is the Sales revenue to achieve a margin of safety of $50,000? Assuming the CM ratio and the fixed costs remain unchanged. (0.5 mark) 3. Calculate ROI and RI of the whole company. (1 mark)
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The image shows financial data for two divisions of Nick Limited of England London and Manchester It provides details about unit sales selling price variable cost per unit fixed expenses and additiona... View the full answer
Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
Posted Date:
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