Managerial Accounting
Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Chapter 10, Problem 3MAD

Papa John’s International, Inc. (PZZA), operates over 5,000 restaurants in the United States and 45 countries. The company operates primarily as a franchisor with 4,353 franchised restaurants and 744 company-operated restaurants. Recent data (in millions) for the company-operated and North America franchised restaurants are as follows:

Chapter 10, Problem 3MAD, Papa Johns International, Inc. (PZZA), operates over 5,000 restaurants in the United States and 45 , example  1

  1. a. Determine the profit margin for each segment. Round to one decimal place.
  2. b. Determine the investment turnover for each segment. Round to two decimal places.
  3. c. Use the DuPont formula to determine the return on investment for each segment. Round to one decimal place.
  4. d. Chapter 10, Problem 3MAD, Papa Johns International, Inc. (PZZA), operates over 5,000 restaurants in the United States and 45 , example  2Analyze and interpret the results of (a), (b), and (c).
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The Bottlebrush Division has income from operations of $90,300, invested assets of $258,000, and sales of $903,000. Use the DuPont formula to compute the return on investment, and show (a) the profit margin, (b) the investment turnover, and (c) the return on investment. Round answers to one decimal place. a.  Profit Margin   % b.  Investment Turnover     c.  Return on Investment                            %
Analyze Papa John's International, Inc. Papa John's International, Inc. (PZZA), operates over 5,000 restaurants in the United States and 45 countries. The company operates primarily as a franchisor with 4,353 franchised restaurants and 744 company-operated restaurants. Recent data (in millions) for the company-operated and North America franchised restaurants are as follows: Restaurants Company- North America Operated Franchised Sales $816 $103 Operating income 75 92 Invested assets 225 10 a. Determine the profit margin for each segment. Round to one decimal place. Profit margin Company-Operated % North America Franchised % b. Determine the investment turnover for each segment. Round to two decimal places. Investment Turnover Company-Operated North America Franchised
Gabbe Industries is a division of a major corporation. Last year the division had total sales of $33,667,200, net operating income of $4,679,741, and average operating assets of $7,014,000. The company's minimum required rate of return is 22%. Required: a. What is the division's margin? Note: Round your percentage answer to 2 decimal places. b. What is the division's turnover? Note: Round your answer to 2 decimal places. c. What is the division's return on investment (ROI)? Note: Round percentage your answer to 2 decimal places. a. Margin b. Turnover c. Return on investment

Chapter 10 Solutions

Managerial Accounting

Ch. 10 - Budgetary performance for cost center Vinton...Ch. 10 - Support department allocations The centralized...Ch. 10 - Prob. 3BECh. 10 - Profit margin, investment turnover, and ROI Briggs...Ch. 10 - Residual income The Commercial Division of Galena...Ch. 10 - Prob. 6BECh. 10 - Budget performance reports for cost centers...Ch. 10 - The following data were summarized from the...Ch. 10 - For each of the following support departments,...Ch. 10 - Prob. 4ECh. 10 - Service department charges In divisional income...Ch. 10 - Varney Corporation, a manufacturer of electronics...Ch. 10 - Horton Technology has two divisions, Consumer and...Ch. 10 - Rocky Mountain Airlines Inc. has two divisions...Ch. 10 - Championship Sports Inc. operates two divisionsthe...Ch. 10 - Prob. 10ECh. 10 - The operating income and the amount of invested...Ch. 10 - Prob. 12ECh. 10 - The condensed income statement for the Consumer...Ch. 10 - The Walt Disney Company (DIS) has four business...Ch. 10 - Prob. 15ECh. 10 - Prob. 16ECh. 10 - Materials used by the Instrument Division of...Ch. 10 - Prob. 18ECh. 10 - GHT Tech Inc. sells electronics over the Internet....Ch. 10 - Profit center responsibility reporting for a...Ch. 10 - Prob. 3PACh. 10 - Effect of proposals on divisional performance A...Ch. 10 - Divisional performance analysis and evaluation The...Ch. 10 - Prob. 6PACh. 10 - Prob. 1PBCh. 10 - Prob. 2PBCh. 10 - Prob. 3PBCh. 10 - Prob. 4PBCh. 10 - Divisional performance analysis and evaluation The...Ch. 10 - Prob. 6PBCh. 10 - Prob. 1MADCh. 10 - Prob. 2MADCh. 10 - Papa Johns International, Inc. (PZZA), operates...Ch. 10 - Panera Bread Company (PNRA) operates over 2,000...Ch. 10 - Prob. 5MADCh. 10 - Prob. 1TIFCh. 10 - Prob. 2TIFCh. 10 - Prob. 3TIFCh. 10 - The three divisions of Yummy Foods are Snack...Ch. 10 - Prob. 5TIFCh. 10 - Prob. 1CMACh. 10 - Prob. 2CMACh. 10 - Prob. 3CMACh. 10 - Morrisons Plastics Division, a profit center,...
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