Question: Provided is the Exhibit 10-4 and segment margin for Centex Yarns': A 1 B Polyester Fibers Division C E Nylon 2 Revenue $ 10,600,000

Provided is the Exhibit 10-4 and segment margin for Centex Yarns': A

Provided is the Exhibit 10-4 and segment margin for Centex Yarns': A 1 B Polyester Fibers Division C E Nylon 2 Revenue $ 10,600,000 $ Rope Division Fibers Division 6,725,000 $ 8,650,000 $ 25,975,000 Total 3 Less variable expenses 4 Cost of goods sold 5,543,000 2,368,000 4,414,000 12,325,000 5 Selling & administrative 1,334,000 649,000 890,000 2,873,000 6 Contribution margin 3,723,000 3,708,000 3,346,000 10,777,000 7 Less traceable fixed expenses 8 Cost of goods sold 1,685,000 1,382,000 2,208,000 5,275,000 10 Segment margin 9 Selling & administrative 11 Common fixed expenses 236,000 174,000 273,000 683,000 $ 1,802,000 $ 2,152,000 $ 865,000 4,819,000 2,886,000 12 Net operating income $ 1,933,000 Polyester Fibers Division Segment Margin $1,802,000 Average Assets $8,153,000 Rope Division Nylon Fibers Division $2,152,000 $8,406,250 $ 865,000 $2,703,000 Margin Asset turnover Return on investment Polyester Fibers 17% 1.3 times 22.1% Rope 32% 0.8 times 25.6% Nylon Fibers 10% 3.2 times 32.0% (b) Compare the margin and asset turnover for the three divisions and make suggestions for increasing the return on investment of each division. B I U T T Ix E T T 0 Word(s)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!