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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:Pippen Co. recorded operating data for its shoe division for the year. The company's desired return is
5%.
$1,000,000
200,000
Sales
Contribution margin
Total direct fixed costs
101,721
Average total operating assets
400,000
How much is the controllable margin for the year?
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- H1.arrow_forwardWaterway Industriesrecorded operating data for its shoe division for the year. The company's desired return is 5%. $10540000 Sales Contribution margin 340000 Total direct fixed costs 120000 Average total operating assets 480000 What is the controllable margin for the year? 0 71% O $60000 O $220000 0.3%arrow_forwardProvide answerarrow_forward
- Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets At the beginning of this year, the company has a $300,000 investment opportunity with the following cost and revenue characteristics: $ 480,000 $ 336,000 The company's minimum required rate of return is 15%. оо Sales Contribution margin ratio Fixed expenses оо $1,400,000 680,000 720,000 440,000 $ 280,000 $ 875,000 10-a. If Westerville's chief executive officer will earn a bonus only if her ROI from this year exceeds her ROI from last year, would she pursue the investment opportunity? Yes No 80% of sales 10-b. Would the owners of the company want her to pursue the investment opportunity? Yes Noarrow_forwardThe following information is for Gable, Inc. and Harlowe, Inc. for the recent year. Harlowe, Inc. $800,000 200,000 600,000 400,000 $200,000 Sales Variable costs. Contribution margin Fixed costs Income from operations Gable, Inc. $800,000 400,000 400,000 200,000 $200,000 What total amount of net income will Harlowe, Inc. earn if it experiences a 10 percent increase in revenue?arrow_forwardAccurate answerarrow_forward
- Wildhorse Corp. reported the following: Beginning of year operating assets $3,220,000 End of year operating assets 3,020,000 Contribution margin 1,020,000 Sales 5,020,000 Controllable fixed costs 626,880 Its required return is 11%.Compute the company’s ROI.arrow_forwardWesterville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets At the beginning of this year, the company has a $300,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses Margin $ 1,400,000 680,000 720,000 440,000 $ 280,000 $ 875,000 $ 480,000 $ 336,000 The company's minimum required rate of return is 15%. 7. If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year? (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) % 80% of salesarrow_forwardCan you please solve this accounting question?arrow_forward
- Parker compound has provided the following datavfor the most recent yeararrow_forwardCrane Company recorded operating data for its shoe division for the year as follows: Sales Contribution margin Controllable fixed costs Average total operating assets $12960000 O $540000 O $370000 O 24% 50% 540000 170000 1080000 What is the controllable margin for the year?arrow_forwardWesterville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets At the beginning of this year, the company has a $300,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $1,400,000 680,000 720,000 440,000 $ 280,000 $ 875,000 $ 480,000 $ 336,000 The company's minimum required rate of return is 15%. Residual income 80% of sales 13. If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year?arrow_forward
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