Exercise E Two segments (Mountain Bike and Road Bike) showed the following data for themost recent year:Mountain bikeRoad bikeContribution to indirect expenses$ 840,000$ 504,000Assets directly used by and identified with the segment2,520,0002,184,000Sales3,360,0006,720,000rs/hannah/Downloads/Managerial-Accounting-1506381825_regexified.htmlManagerial Accountinga. Calculate return on investment for each segment in the most direct manner.b. Calculate return on investment using the margin and turnover components.

In this question, we have to calculate the return on investment

Exercise E Two segments (Mountain Bike and Road Bike) showed the following data nost recent year: Mountain bike F Contribution to indirect expenses $ 840,000 Assets directly used by and identified with the segment 2,520,000 Sales 3,360,000

Exercise E Two segments (Mountain Bike and Road Bike) showed the following data nost recent year: Mountain bike F Contribution to indirect expenses $ 840,000 Assets directly used by and identified with the segment 2,520,000 Sales 3,360,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: None

A: Step 1:Computation of the target income: CamerasPhonesComputersAAverage…

Q: The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the…

A: For the purpose of computation of contribution margin per unit, the variable cost per unit are…

Q: Labor Gas Invoices Labor Gas Invoices $450,000 $30,000 $130,000 $610,000 Total costs The above…

A: Activity-based costingThe costing technique that determines the business cost on the basis of…

Q: Rahul

A: The objective of the question is to determine the financial impact of discontinuing the Racing Bikes…

Q: Boston Home Center (BHC) offers customers the use of a truck at $66 per trip to take purchased…

A: In Activity Based Costing, activity rate is used to allocate overhead. According to the used of…

Q: Revenue Recognition over Time Wells Corp. appropriately determined that Construction Project A was…

A: Calculation of amount of loss that Wells should recognize for the current year are as follows

Q: The Western and Pacific Railroad has two divisions, the Western Division and the Pacific Division.…

A: Cost allocation is a process where overall overhead cost is allocated to various related activities…

Q: Gadubhai

A: Reference:Franklin, M., Graybeal, P., Cooper, D., & White, A. (n.d.). Keep or discontinue a…

Q: Normandy Instruments invests heavily in research and development (R&D), although it must currently…

A: Economic value added is helpful in computing the amount of economic profit the company generates…

Q: KVHZUM123 Corporation has two departments, Toys and Candy. The company's most recent monthly…

A: NOI stands for net operating income refers to the measure that is used for analysing the…

Q: of $28,000. Total assets value is $150,000 and trade payable value is $8,000. The ROI for the…

A: Return on income is measured as net income divided by the original capital cost of the investment

Q: Exercise 1 - 15 (Algo) Traditional and Contribution Format Income Statements [LO1-6] The Alpine…

A: Income Statement(Under Absorption Costing)Particulars$$Sales (1,230,000/410 = 3,000 units) $…

Q: A-2

A: Hi studentSince there are multiple sub parts, we will answer only first three sub parts. Variable…

Q: The Westem and Pacific Railroad has two divisions, the Western Division and the Pacific Division.…

A: When an entity produces or renders two or more products or services and costs incurred for them…

Q: margin es:

A: Segment margin is the profit or loss produced by each component of the businsesss. It considers only…

Q: ngageNOWv2 | Online teachin X +…

A: Solution... Sales = $1,015,000 Variable cost = 63 % of sales = 63 % * $1,015,000 = $639,450…

Q: Required: Use the 5-step model to analyse the problem and give all entries required from date of…

A: Given in the question: Franchise Contract Date March 1, 2019 Non-Refundable…

Q: Sales Comparison Approach: Market Data Grid Elements of Subject Comparison Site size Effective age…

A: The sales comparison approach is a method used in real estate appraisal to determine the value of a…

Q: BKARIO13 FINANCIAL ACCOUNTING AND REPORTING I QUESTION 1 During the year 2020, Akasia Maju Bhd (AMB)…

A: "MFRS" stands for the "Malaysian Financial Reporting Standards" .This framework was introduced by…

Q: Dave Inc.'s cost of capital is 13%. The company has provided you with a summary of its annual…

A: Here,Net Income from Division B is $2,500Capital Invested by Division B is $8,100Net Income from new…

Q: Classify all of the following expenses from a not-for-profit museum from the current year as either…

A: Program expenses: These are directly related to the museum's mission and its educational and…

Q: Regal mpany man ictures three types of bicycles-a dirt bike, a mountain bike, and a racing bike.…

A: Under segment reporting only the segment margin is calculated and used for evaluating the…

Q: Assume a retailing company has two departments—Department A and Department B. The company’s most…

A: Relevant costs are used for decision making. All variable costs are relevant costs. Irrelevant costs…

Q: Hansaben

A: Step 1: Show formula version of the solution sheet for a better understanding of the calculations:…

Q: At the beginning of this year, the company has a $362,500 investment opportunity with the following…

A: Residual income is the amount which is left over after paying all the necessary expenses and…

Q: Coolbrook Company has the following information available for the past year: River Division Stream…

A: The term "return on investment," sometimes known as "ROI," is frequently used in business to refer…

Q: Variable expenses Contribution margin Fixed expenses Net operating income 55,000 $ 65,000 17,000…

A: The contribution margin is calculated as the difference between the sales and variable costs. The…

Q: Current Attempt in Progress Sarasota, Inc. reports the following financial information for its…

A: Return on InvestmentThe rate or percent of return expected or earned for the investment made is…

Q: Lozier Catering and Events (LCE) offers a variety of services from small gatherings to large…

A: Answer:- A traditional income statement is a formal presentation of the profit or loss from the…

Q: $393,110 Use the table of annual $8,252 Рayroll expenses to calculate the category expense…

A: Business expenses are an important component of every business undertaken. Each expense contributes…

Q: Two investment centers at Marshman Corporation have the following current-year income and asset…

A: Return on investment: - It is one of the measures used to evaluate the performance of a division in…

Q: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? 2.…

A: Relevant costs are those costs which are used in decision making purpose. These are future cash…

Q: Car/Truck Repair Small Engines Boats/ Marine Total Sales Revenue $3,500,000…

A: A line of a product must be dropped when it is not generating enough cash to cover its fixed…

Q: i.3

A: The objective of the question is to prepare a variable costing income statement for Broadwater…

Q: 11. Perform Common Sizing for the two Nursing Homes below. CH13 Nursing Home A Nursing Home B…

A: Under common sizing each of the line item on the respective balance sheet is expressed as percentage…

Q: The following data are available for two mutually exclusive projects: Project A $16,900,000…

A: Since you have posted a question with multiple sub parts, we will provide the solution…

Q: For its three investment centers, Concord Company accumulates the following data: Sales Controllable…

A: Ratio analysis is a method used to analyze financial statements by calculating and comparing various…

Q: \table[[,Total,Dirt Bikes,\table[[Mountain],[Bikes]],Racing…

A: The financial analysis presented offers insights into the viability of continuing the production and…

Q: Compute EVA

A: Economic value added is helpful in computing the amount of economic profit the company generates…

Q: Required: Prepare a budgeted income statement for year 2. (Do not round intermediate calculations.…

A: The income statement is one of the financial statement of the business. The income statement tells…

Q: Required Information [The following information applies to the questions displayed below.] The…

A: The financial ratios are calculated on the basis of the various elements of the financial…

Q: The Western and Pacific Railroad has two divisions, the Western Division and the Pacific Division.…

A: When an entity produces or renders two or more products or services and costs incurred for them…

Q: Earned Value Analysis of the project supported by cost Performance Index and Schedule Performance…

A: Earned Value Analysis is a method applied by the managers to understand the schedule, cost and the…

Q: Washington Company has two divisions: the Adams Division and the Jefferson Division. The following…

A: Formula: Economic Value added ( EVA) = Net income - Total capital employed x Cost of capital where,…

Q: The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a…

A: The segment margin is the margin or return from each segment of the company. The allocated fixed…

Q: None

A: To determine the net income, first calculate the revenue from the sale of the boats: Total product…

Q: Real Wood Structures Company has invested $900,000 in a plant to build small tool sheds. The target…

A: The rate of return is calculated as net income divided by average investment. Desired rate of…

Question

100%

Exercise E Two segments (Mountain Bike and Road Bike) showed the following data for the
most recent year:
Mountain bike
Road bike
Contribution to indirect expenses
$ 840,000
$ 504,000
Assets directly used by and identified with the segment
2,520,000
2,184,000
Sales
3,360,000
6,720,000
rs/hannah/Downloads/Managerial-Accounting-1506381825_regexified.html
Managerial Accounting
a. Calculate return on investment for each segment in the most direct manner.
b. Calculate return on investment using the margin and turnover components.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Answer showing excel
The Western and Pacific Railroad has two divisions, the Western Division and the Pacific Division. The company recently invested $8,400,000 to maintain its railroad track. Pertinent data for the two divisions are as follows: Total Miles Traveled: Western Division Pacific Division The amount of track improvement cost that should be allocated to the Western Division is: Note: Round Intermediate calculations to 1 decimal place. Multiple Choice $560,000. $420,000. $3,360,000. 840,000 miles 1,240,000 miles $500,769.
None
Please help me with correct answer thanku
do not give solution in image
Subject :- Account
Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments: Total Facility locatión Kentucky Arizona Illinois New product $ 62,587,200 $ 100,360,000 $ 77,772,800 $ 240,720,000 revenue Research & $ 60,360,000 Development Using revenue as an allocation base, the amount of costs allocated to the Kentucky research facility is calculated to be: Multiple Choice $24,072,000. $15,693,600. $244,504,000. $9,018,000. $18,036,000.
Algo Identifying upstream and downstream cost LO During year 2, Thornton's manufacturing company incurred $115,200,000 of research and development (R&D) cost to create a long-life battery to use in computers. in accordance with FASB standards, the entire R&D cost was recognized as an expense in year 2 manufacturing costs ( direct materials, direct labor, and overhead) are expected to be $60 per unit. Packaging shipping, and sales commissions are expected to be $17 per unit. Thornton expects to sell 2,4000,000 batteries before new research renders the battery design technologically obsolete. During year 2, Thornton made 432,000 batteries and sold 407,000 of them Required a) Identify the upstream and downstream costs b) Determine the year 2 amount of goods sold and the ending inventory balance that would appear on the financial statements that are prepared in accordance with GAAP c) Determine the sales price assuming that Thornton desires to earn a profit margin that is equal to…
Don't give answer in image
Exercise 9-7A Return on investment An investment center of Aguilar Corporation shows an operating income of $7,500 on total operating assets of $60,000. Required Compute the return on investment.
all parts of the question
Please do not give solution in image format thanku