The following information is available for Sunland Department Stores: Average operating assets Controllable margin Contribution margin Minimum rate of return What is Sunland's residual income? O $59200 O. $160800 O $10800 O $670000 $740000 70000 220000 8%

Assume a retailing company has two departments-Department A and Department B. The company's most recent contribution format income statement follows: Total Department A Department B $ 800,000 350,000 450,000 $ 350,000 250,000 Sales $ 450,000 Variable expenses Contribution margin 100,000 100,000 350,000 Fixed expenses 400,000 140,000 260,000 Net operating income (loss) $ 50,000 $ (40,000) $ 90,000 The company says that $60,000 of the fixed expenses being charged to Department A are sunk costs or allocated costs that will continue if the segment is discontinued. However, if Department A is discontinued the sales in Department B will drop by 18%. What is the financial advantage (disadvantage) of discontinuing Department A? Multiple Choice $(103,000) $(83,000) $(92,000) $(101,000)

Ma3.   Nike Corp. recorded operating data for its shoe division for the year as follows:   Sales - $12160000   Contribution margin - 380000   Controllable fixed costs - 120000   Average total operating assets - 760000     What is the controllable margin for the year?   A.$260000   B.32%   C.$380000   D.50%

Required Supply the missing information in the following table for Rooney Company. (Do not round intermediate calculations. Round "ROI" answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).)

H1.

= Required Supply the missing information in the following table for Zachary Company: Note: Do not round intermediate calculations. Round "ROI" answer to 2 decimal places. (i.e., 0.2345 shoule Sales ROI Operating assets Operating income Turnover Residual income Operating profit margin Desired rate of return $ 309,600 1.8 % 13 % 19%

Kyle Corporation provides the following information for the Product Division and Service Division for the year. Product Division Service Division 420,000 $ 650,000 195,000 245,000 640,000 610,000 14.0% 14.0% Net sales Operating income Average total assets Target rate of return $ Requirement 1. Calculate the return on investment for each division. (Enter answers as a percent rounded to the nearest hundredth percent, X.XX%) The return on investment for the Product Division is The return on investment for the Service Division is Requirement 2. Which division has the highest ROI? % % Requirement 3. Calculate the residual income for each division. (Round answers to the nearest whole dollar.) The residual income for the Product Division is The residual income for the Service Division is Requirement 4. Which division has the highest residual income?

Given the following information, what is the contribution margin ratio? Sales Variable expenses Fixed Expenses Net Income 44% 33% 23% 56% $828000 364320 276000 $187680

Assume a retailing company has two departments-Department A and Department B. The company's most recent contribution format income statement follows: Total Department A Department B Sales $ 800,000 $ 350,000 $ 450,000 Variable expenses 320,000 120,000 200,000 Contribution margin 480,000 230,000 250,000 Fixed expenses 400,000 140,000 260,000 Net operating income (loss) $ 80,000 $ 90,000 $ (10,000) The company says that $120,000 of the fixed expenses being charged to Department B are sunk costs or allocated costs that will continue if the segment is discontinued. However, if Department B is discontinued the sales in Department A will drop by 12%. What is the financial advantage (disadvantage) of discontinuing Department B?

Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 255,000 178,500 76,500 107,000 (30,500) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be eliminated?