Question: Please see attachment. Please show work so I can compare your vs mine. Thank you. Royal Lawncare Company produces and sells two packaged products, Weedban
Please see attachment. Please show work so I can compare your vs mine. Thank you.
Royal Lawncare Company produces and sells two packaged products, Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Selling price per unit Variable expenses per unit Traceable fixed expenses per year Greengrow $ 6.00 $ 7.50 $ 2.40 $ 5.25 $45,000 $21,000 Common fixed expenses in the company total $33,000 annually. Last year the company produced and sold 15,000 units of Weedban and 28,000 units of Greengrow. Required: Prepare a contribution format income statement segmented by product lines. (Input all amount as positive value. Omit the "$" sign in your response.) Total Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating income Weedban $ Greengrow $ $ $ $ $ Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sales Net operating income Average operating assets $7,500,000 $600,000 $5,000,000 Requirement 1: Compute the margin for Alyeska Services Company. (Omit the "%" sign in your response.) Margin % Requirement 2: Compute the turnover for Alyeska Services Company. (Round your answer to 2 decimal places.) Turnover Requirement 3: Compute the return on investment (ROI) for Alyeska Services Company. (Omit the "%" sign in your response.) ROI % Juniper Design Ltd. of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of 600,000 on sales of 3,000,000. The company's average operating assets for the year were 2,800,000 and its minimum required rate of return was 18%.(The currency used in England is the pound, denoted by .) Required: Compute the company's residual income for the year. (Omit the "" sign in your response.) Residual income Provide the missing data in the following table for a distributor of martial arts products: (Round your Turnover to 2 decimal places. Omit the "$" and "%" signs in your response.) $ Division Bravo $11,500,000 $ $920,000 $210,000 $800,000 $ $ Alpha Sales Net operating income Average operating Charlie $ assets Margin Turnover Return on investment (ROI) 4% 5 % 7% % 20% 14% Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Net operating income Minimum required rate of return Division A $12,000,000 Division B $14,000,000 Division C $25,000,000 $3,000,000 $7,000,000 $5,000,000 $600,000 $560,000 $800,000 14% 10% 16% Requirement 1: Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (Omit the "%" sign in your response.) ROI Division A Division B Division C % % % Requirement 2: Compute the residual income for each division. (Negative amount should be indicated by a minus sign. Leave no cells blank, enter "0" as required. Omit the "$" sign in your response.) Division A Residual income Division B $ Division C $ $ Requirement 3: Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. (a If performance is being measured by ROI, which division or divisions will probably accept ) the opportunity? Reject? Division A Division B Division C (b If performance is being measured by residual income, which division or divisions will ) probably accept the opportunity? Reject? Division A Division B Division C "I know headquarters wants us to add that new product line," said Dell Havasi, manager of Billings Company's Office Products Division. "But I want to see the numbers before I make any move. Our division's return on investment (ROI) has led the company for three years, and I don't want any letdown." Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROI, with year-end bonuses given to the divisional managers who have the highest ROIs. Operating results for the company's Office Products Division for the most recent year are given below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Divisional operating assets $10,000,000 6,000,000 4,000,000 3,200,000 $800,000 $4,000,000 The company had an overall return on investment (ROI) of 15% last year (considering all divisions).The Office Products Division has an opportunity to add a new product line that would require an additional investment in operating assets of $1,000,000. The cost and revenue characteristics of the new product line per year would be: Sales Variable expenses Fixed expenses $2,000,000 60% of sales $640,000 Requirement 1: Compute the Office Products Division's ROI for the most recent year; also compute the ROI as it would appear if the new product line is added. (Round your answers to 1 decimal place. Omit the "%" sign in your response.) ROI Present New Line % % Total for company % Requirement 2: If you were in Dell Havasi's position, would you accept or reject the new product line? Requirement 3: Why do you suppose headquarters is anxious for the Office Products Division to add the new product line? Requirement 4: Suppose that the company's minimum required rate of return on operating assets is 12% and that performance is evaluated using residual income. (a Compute the Office Products Division's residual income for the most recent year; also ) compute the residual income as it would appear if the new product line is added. (Omit the "$" sign in your response.) Residual income Present New Line Total for company $ $ $ (b Under these circumstances, if you were in Dell Havasi's position, would you accept or reject ) the new product line? Division A manufactures electronic circuit boards. The boards can be sold either to Division B of the same company or to outside customers. Last year, the following activity occurred in Division A: Selling price per circuit board Variable cost per $125 $90 circuit board Number of circuit boards: Produced during the year Sold to outside customers Sold to Division B 20,000 16,000 4,000 Sales to Division B were at the same price as sales to outside customers. The circuit boards purchased by Division B were used in an electronic instrument manufactured by that division. (one board per instrument). Division B incurred $100 in additional variable cost per instrument and then sold the instruments for $300 each. Requirement 1: Prepare income statements for Division A, Division B, and the company as a whole. (Input all amount as positive value. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Division A Sales Expenses: Added by the division Transfer price paid Total expenses Net operating income Total Company Division B $ $ $ $ $ $ Requirement 2: Assume that Division A's manufacturing capacity is 20,000 circuit boards. Next year, Division B wants to purchase 5,000 circuit boards from Division A rather than 4,000. (Circuit boards of this type are not available from outside sources.) From the standpoint of the company as a whole, should Division A sell the 1,000 additional circuit boards to Division B or continue to sell them to outside customers
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