Waveney DIY Centers (WDC) operates a few dozen stores in the eastern United States. The stores are popular with home remodelers, contractors, and do-it-yourself customers. The managers at Waveney are interested in understanding what drives costs as well as getting better cost estimates when planning new stores. The area manager for the Southeast Region is interested in new data analysis approaches to management and offered to run a test using data from the 14 stores in the region. The initial thoughts of the managers and the financial analysts in the region were that two primary factors drove store costs: store area (square footage) and revenue. The following data were collected from the most recent year of operations (revenues and costs in thousands of dollars). Revenues (5000) Costs (5000) Store SE-01 Area (Square Feet) $ 21,545 70,147 $ 16,799 SE-02 16,482 52,417 13,495 SE-03 26,721 84,331 20,210 SE-84 20,389 68,374 16,079 SE-05 20,666 59,509 16,112 SE-06 18,756 68,374 15,099 SE-07 25,505 96,748 19,691 SE-08 13,701 47,098 11,747 SE-09 24,081 79,012 18,453 SE-10 16,830 63,055 13,864 SE-11 21,358 66,601 16,633 SE-12 18,120 73,693 14,797 SE-13 14,674 63,055 12,570 SE-14 23,904 75,466 18,294 Exercise 5-44 (Algo) Methods of Estimating Costs: High-Low (LO 5-1, 2) Required: a. Use the high-low method to estimate the fixed and variable portions of store costs based on store revenues. b. The managers in the region are interested in opening a new store with expected revenues of $20.0 million. Assuming the data and cost estimates from the current stores are appropriate for the new store (SE-15), what are the estimated store costs for store SE-15? c. Managers are also considering a "mega-store" with revenues of $32.0 million. What are the estimated store costs for the mega store? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Use the high-low method to estimate the fixed and variable portions of store costs based on store revenues. Note: Round variable cost percentage answer to 1 decimal place. Enter Fixed cost answer in thousands of dollars rounded to 2 decimal places. Variable cost Fixed cost 54.6 % 3,984.00 Required A Required B >

Adams Corporation evaluates divisional managers based on Return on Investment (ROI) and has provided the operating results of the Northern DIVislon from last year. The Controller has asked you to compute the ROI and Residual Income based on data from last year and If the alvislon adds a new product line. Use the Information Included in the Excel Simulation and the Excel functions described below to complete the task. • Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell, "=G5" was entered, the formula would output the result from cell G5, or 4.00 In this example. • Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: - (plus sign to add), - (minus sign to subtract). * (asterisk sign to multiply), and (forward slash to divide). From the Excel Simulation below, If in a blank cell "=G5-G6" was entered, the formula would add the values…

UrLink Company is a newly formed company specializing in high-speed Internet service for home and business. The owner, Lenny Kirkland, had divided the company into two segments: Home Internet Service and Business Internet Service. Each segment is run by its own supervisor, while basic selling and administrative services are shared by both segments.Lenny has asked you to help him create a performance reporting system that will allow him to measure each segment’s performance in terms of its profitability. To that end, the following information has been collected on the Home Internet Service segment for the first quarter of 2017.     Budgeted   Actual Service revenue   $24,800   $25,000 Allocated portion of:              Building depreciation   10,300   10,300      Advertising   4,700   4,200      Billing   3,200   3,200      Property taxes   1,100   1,200 Material and supplies   1,400   1,300 Supervisory salaries   9,400   9,400 Insurance   4,300   3,200 Wages…

A seminar was recently attended by the Managing Director of XYZ Manufacturing Company Limited located at Sheffield. The focus of the seminar was “optimising scarce resources utility in a manufacturing setting with particular reference to linear programming”. On his return to his base, he called for a meeting with the Management to share his experience from the seminar and the impact this will have on the decision by the Board to produce two major products in the years ahead. A group of external research experts had previously been commissioned and the following represents information from the research carried out by them The expected products are “Best” and “Smart” with expected costs statistics as follows:   Best £ Smart £ Material costs (5kg@£50/kg) 250 (3kg@£50/kg) 150 Labour costs         Machinery time (4 hours @£15/Hr) 60 (2hours @£15/Hr) 30 Other Processing Time (4 hours @£10/hr) 40 (5hours@£10/Hr) 50 The applicable pricing…

izzo Goal Inc. produces and sells hockey equipment, often custom made for online orders. The company has the following performance metrics on its balanced scorecard: days from ordered to delivered, number of shipping errors, customer retention rate, nd market share. A measure map illustrates that the days from ordered to delivered and the number of shipping errors are both expected to directly affect the customer retention rate, which affects market share. Additional internal analysis finds that: Every shipping error over three shipping errors per month reduces the customer retention rate by 1.5%. On average, each day above three days from ordered to delivered yields a reduction in the customer retention rate of 1%. Each day before three days from order to delivery yields an increase in the customer retention rate of 1%, on average. Rizzo Goal Inc.'s current customer retention rate is 60%. The company estimates that for every 1% increase or decrease in the customer retention rate,…

Rizzo Goal Inc. produces and sells hockey equipment, often custom made for online orders. The company has the following performance metrics on its balanced scorecard: days from ordered to delivered, number of shipping errors, customer retention rate, and market share. A measure map illustrates that the days from ordered to delivered and the number of shipping errors are both expected to directly affect the customer retention rate, which affects market share. Additional internal analysis finds that: Every shipping error over 2 shipping errors per month reduces the customer retention rate by 1.5%. On average, each day above 2 days from ordered to delivered yields a reduction in the customer retention rate of 1%. Each day before 2 days from order to delivery yields an increase in the customer retention rate of 1%, on average. Rizzo Goal Inc.’s current customer retention rate is 75%. The company estimates that for every 1% increase or decrease in the customer retention rate, market share…

Rizzo Goal Inc. produces and sells hockey equipment, often custom made for online orders. The company has the following performance metrics on its balanced scorecard: days from ordered to delivered, number of shipping errors, customer retention rate, and market share. A measure map illustrates that the days from ordered to delivered and the number of shipping errors are both expected to directly affect the customer retention rate, which affects market share. Additional internal analysis finds that: Every shipping error over 3 shipping errors per month reduces the customer retention rate by 1.5%. On average, each day above 3 days from ordered to delivered yields a reduction in the customer retention rate of 1%. Each day before 3 days from order to delivery yields an increase in the customer retention rate of 1%, on average. Rizzo Goal Inc.'s current customer retention rate is 70%. ● The company estimates that for every 1% increase or decrease in the customer retention rate, market share…

The Northwest regional manager of Logan Outdoor Equipment Company has conducted a study to determine how her store managers are allocating their time. A study was undertaken over three weeks that collected the following data related to the percentage of time each store manager spent on the tasks of attending required meetings, preparing business reports, customer interaction, and being idle. The results of the data collection appear in the following table: a. Create a stacked-bar chart with locations along the vertical axis. Reformat the bar chart to best display these data by adding axis labels, a chart title, and so on. b. Create a clustered-bar chart with locations along the vertical axis and clusters of tasks. Reformat the bar chart to best display these data by adding axis labels, a chart title, and the like. c. Create multiple bar charts in which each location becomes a single bar chart showing the percentage of time spent on tasks. Reformat the bar charts to best display these data by adding axis labels, a chart title, and so forth. d. Which form of bar chart (stacked, clustered, or multiple) is preferable for these data? Why? e. What can we infer about the differences among how store managers are allocating their time at the different locations?

Silver Lining Inc. has a balanced scorecard with a strategy map that shows that delivery time and the number of erroneous shipments are expected to affect the companys ability to satisfy the customer. Further, the strategy map for the balanced scorecard shows that the hours from ordered to delivered affects the percentage of customers who shop again, and the number of erroneous shipments affects the online customer satisfaction rating. The following information is also available: The companys target hours from ordered to delivered is 40. Every hour over the ordered-to-delivered target results in a 0.5% decrease in the percentage of customers who shop again. The companys target number of erroneous shipments per year is no more than 65. Every error over the erroneous shipments target results in a 0.5 point decrease in the online customer satisfaction rating and an added future financial loss of 500. The company estimates that for every 1% decrease in the percentage of customers who shop again, future profit decreases by 4,000 and market share decreases by 0.3%. The company also estimates that for every 1 point decrease in the overall online customer satisfaction rating (on a scale of 1 to 10), future profit decreases by 3,000 and market share decreases by 0.6%. Using these estimates, determine how much future profit and future market share will change if: Average hours from ordered to shipped is 27.5. Average shipping time (hours from shipped to delivered) is 16.3. Number of erroneous shipments is 80.

Colby Company makes cases for cell phones of all sizes and types for sale through specialty retailers. The company makes a standard model for the most recent iPhone as well as a deluxe model. Management has designed an ABC system with the following activity cost pools and activity rates for these models: Activity Cost Pool Supporting manufacturing Order processing Customer service Management would like an analysis of the profitability of a particular customer, Cell City, which has ordered the following products over the last 12 months: Number of cases Number of orders Direct labour-hours per case Selling price per case Direct materials cost per case The company's direct labour rate is $19 per hour. Sales Costs: Activity Rates $3 per direct labour-hour $15 per order $50 per customer Direct materials Direct labour Supporting manufacturing Order processing Customer service Customer margin Standard Deluxe Model Model 120 35 23 ta ta OSOF 0.20 $ $ 5 35 10 64 $9 $ Required: Using the…