The downtown branch of Emilys Bakery is organized as an investment center. The following information is available
Question:
The downtown branch of Emily’s Bakery is organized as an investment center. The following information is available for the current year.
Sales .............................................................................................................. $448,000
Variable expenses.......................................................................................... $217,000
Traceable fixed costs..................................................................................... $230,000
Average total assets invested in this segment.................................................. $168,000
Compute the following measures for this investment center:
a Contribution margin: $____________
b Contribution margin ratio: ____________%
c Responsibility margin: $____________
d Return on assets: ____________%
e Increase in responsibility margin that would be expected to result from a 10% increase in sales volume. $____________
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield