Nick Limited of England has two regions of operation: London and Manchester. Selected data on the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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)
Expert Answer:
Answer rating: 100% (QA)
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:
Students also viewed these accounting questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
For the Somerset furniture Company described in Case Problem 10.1 in Chapter 10, determine the product lead time by developing a time line from the initiation of a purchase order to product delivery....
-
The circuit in Figure P29.61 consists of wires at the top and bottom and identical metal springs in the left and right sides. The upper portion of the circuit is fixed. The wire at the bottom has a...
-
A weather balloon is rising vertically at the rate of 5 meters per second. An observer is standing on the ground 300 meters from where the balloon was released. At what rate is the distance between...
-
Plaintiff contracted to install a boiler for defendant. After plaintiff had installed and tested the boiler, but before final payment to plaintiff had been made, defendant took custody of the boiler...
-
Yield to maturity Each of the bonds shown in the following table pays interest annually. a. Calculate the yield to maturity (YTM) for each bond. b. What relationship exists between the coupon...
-
6. For the following code fragment, what are the values of the array elements after the statements are executed? int[] T = {2, 2, 2, 3, 3, 3}; for (int i = 1; i < T.length; i++) { T[i] = (T[i-1] +...
-
You, CA, are the audit senior of Ball Construction Corporation (BC), a small public company. It is September 19, 2013, and the year-end audit fieldwork has just been completed. The audit partner,...
-
Define the following: a) Exocrine Gland b) Endocrine Gland c) Hormone d) Target organ
-
1. A C E Calculate a) Equivalent capacitance, b) total charge and c) total energy d) charge through each capacitor e) voltage through each capacitor and f) energy stored in each capacitor for the...
-
What is the electric flux through a 5.0 m x 8.0 m plane that has an area vector which is at a 15 degree angle to a uniform electric field of magnitude 5.610 N/C? 2.163e 8 Nm^2/C 1.103e8 Nm^2/C...
-
A process of heating crude oil to a high temperature under a very high pressure to increase the yield of lighter distillates, is known as _ _ a cracking b carbonisation c fractional distillation d...
-
Navier Stoke's equation represents the conservation of ( A ) Energy ( B ) Mass ( C ) Pressure ( D ) Momentum
-
Consider the pinned-free plate illustrated below, which has unit length in the r- and z-directions. The plate is acted on by the stress, oy (2, z), defined below. To maintain equilibrium, a point...
-
VK Limited invited applications for 1,50,000 Equity Shares of Rs.10 each at a discountof 3%. The amount was payable as follows:On Application................................. Rs.2 per shareOn...
-
Using a graphing utility, graph y = cot -1 x.
-
Jacqui Giraud owns and operates a restaurant. Her fixed costs are $21,000 per month. She serves luncheons and dinners. The average total bill (excluding tax and tip) is $19 per customer. Girauds...
-
George Brown, a self-employed management consultant, had just settled down to work when he received a call from Ray Sharma, vice president of Software Corporation (SC), a software distributing and...
-
We used a lump-sum allocation method for fixed costs a few years ago, but we gave it up because managers always predicted usage below what they actually used. Is this a common problem? How might it...
-
Supply chain management is the management of activities from all organizations involved in producing and delivering a good or service. Describe the supply chain that delivers education at your...
-
Burger King introduced mass customization to its fast-food offerings in the mid-1970s, thus revolutionizing how fast food could be delivered. Today, mass customization is aided by the Internet and...
-
What decision would you make in this situationland or sea?
Study smarter with the SolutionInn App