None Three divisions of Jameson Co. report the following sales and operating data:FitnessTrainingSpaServicesSales$530,000$780,000Average operating assets$106,000$156,000AthleticWear$600,000$120,000Operating income$ 21,200$ 31,200Minimum required rate of return13%15%$ 30,00013%Required:1. Compute the ROI for each division, using the formula stated in terms of margin and turnover.Fitness trainingSpa servicesAthletic wearROI%%%

"Return on investment" (ROI) is a financial term used to assess how profitable an investment is. It…

Three divisions of Jameson Co. report the following sales and operating data: Fitness Training Spa Services Sales $530,000 $780,000 Athletic Wear $600,000 Average operating assets $106,000 $156,000 $120,000 Operating income $ 21,200 $ 31,200 $ 30,000 Minimum required rate of return 13% 15% 13% Required: 1. Compute the ROI for each division, using the formula stated in terms of margin and turnover. Fitness training ROI % Spa services % Athletic wear %

Three divisions of Jameson Co. report the following sales and operating data: Fitness Training Spa Services Sales $530,000 $780,000 Athletic Wear $600,000 Average operating assets $106,000 $156,000 $120,000 Operating income $ 21,200 $ 31,200 $ 30,000 Minimum required rate of return 13% 15% 13% Required: 1. Compute the ROI for each division, using the formula stated in terms of margin and turnover. Fitness training ROI % Spa services % Athletic wear %

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 2CE: Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each...

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Three divisions of Jameson Co. report the following sales and operating data: Fitness Spa Training Services $530,000 $780,000 Athletic Wear $600,000 $106,000 $ 21, 200 $156,000 $ 31,200 15% $120,000 $ 30,000 13% Sales Average operating assets Operating income Minimum required rate of return Required: 1. Compute the ROI for each division, using the formula stated in terms of margin and turnover. Fitness training Spa services Athletic wear ROI Residual income % % % 2. Compute the residual income for each division. 13% Fitness Training Spa Services Athletic Wear 3. Assume that each division is presented with an investment opportunit
Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each agent is paid 28,000 per year and is able to process 4,000 purchase orders. Last year, 17,800 purchase orders were processed by the five agents. Required: 1. Calculate the activity rate per purchase order. 2. Calculate, in terms of purchase orders, the: a. total activity availability b. unused capacity 3. Calculate the dollar cost of: a. total activity availability b. unused capacity 4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for 14,000? How many purchase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?
Better Health Company has two service departments -actuarial and premium rating, and two operations departments - marketing and sales. The distribution of each service department's efforts to the other departments is shown below: FROM Actuarial Rating TO Actuarial 0% 25% Actuarial Premium Rating Marketing Sales Rating 40% 0% Marketing 20% 37.5% The direct operating costs of the departments (including both variable and fixed costs) were as follows: $ 70,000 $ 40,000 $ 70,000 $ 80,000 Sales 40% 37.5% The total cost accumulated in the marketing department using the step method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar; assume the actuarial department goes first): A. $114,000. B. $118,000. C. $142,000. D. $146,000. E. $151,000. DA onn.
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