EP MANAGERIAL ACCOUNTING-CONNECT ACCESS
17th Edition
ISBN: 9781264355730
Author: Garrison
Publisher: MCG COURSE
expand_more
expand_more
format_list_bulleted
Question
Chapter 11, Problem 11E
1
To determine
Concept introduction:
The Return on Investment is also called ROI. The return means the profit you make as a result of your investments. Return on Investment is a performance measure used to evaluate the profitability or efficiency of an investments or compare the efficiency of a number of investments. ROI is generally defined as the ratio of net profit over the total cost of the investment. ROI is calculated by dividing the net income by the total cost of the investment.
The table showing the relation between sales and return on investment
2
To determine
Concept introduction:
Return on investment:
The Return on Investment is also called ROI. The return means the profit you make as a result of your investments. Return on Investment is a performance measure used to evaluate the profitability or efficiency of an investments or compare the efficiency of a number of investments. ROI is generally defined as the ratio of net profit over the total cost of the investment. ROI is calculated by dividing the net income by the total cost of the investment.
What happened to the company’s return on investment as sales increase
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Korvanis Corporation operates a Medical Services Department that charges its variable costs to operating
departments based on the actual number of employees in each department. It charges fixed costs to operating
departments based on the long-run average number of employees.
The Medical Services Department's variable costs are budgeted at $56 per employee and its fixed costs are
budgeted at $632,700 per year. Actual Medical Services Department costs for the most recent year were
$106,800 for variable costs and $638,000 for fixed costs. Data concerning employees in the three operating
departments follow:
Budgeted number of employees
Cutting
613
Milling
299
Assembly
912
Actual number of employees for the most
recent year
513
399
812
Long-run average number of employees
600
400
1,000
Required:
1. Calculate the Medical Services Department charges to each of the operating departments-Cutting, Milling,
and Assembly.
2. How much, if any, of the Medical Services Department's actual costs…
please help with this question thank you
PLEASE HELP ME WITH THIS ACCOUNTING PROBLEM! I DESPERATELY NEED HELP.
Chapter 11 Solutions
EP MANAGERIAL ACCOUNTING-CONNECT ACCESS
Ch. 11 - Prob. 1QCh. 11 - Prob. 2QCh. 11 - Prob. 3QCh. 11 - Prob. 4QCh. 11 - Prob. 5QCh. 11 - Prob. 6QCh. 11 - Prob. 7QCh. 11 - Prob. 8QCh. 11 - Prob. 9QCh. 11 - Prob. 10Q
Ch. 11 - Prob. 1AECh. 11 - Prob. 2AECh. 11 - Prob. 1F15Ch. 11 - Prob. 2F15Ch. 11 - Prob. 3F15Ch. 11 - Prob. 4F15Ch. 11 - Prob. 5F15Ch. 11 - Prob. 6F15Ch. 11 - Prob. 7F15Ch. 11 - Prob. 8F15Ch. 11 - Prob. 9F15Ch. 11 - Prob. 10F15Ch. 11 - Prob. 11F15Ch. 11 - (
$1,000,000
300,000
700,000
500.000
$
200,000
...Ch. 11 - Prob. 13F15Ch. 11 - Prob. 14F15Ch. 11 - Prob. 15F15Ch. 11 - Prob. 1ECh. 11 - Prob. 2ECh. 11 - Prob. 3ECh. 11 - Prob. 4ECh. 11 - Prob. 5ECh. 11 - Prob. 6ECh. 11 - Prob. 7ECh. 11 - Prob. 8ECh. 11 -
EXERCISE 11-9 Return on Investment (ROI) and...Ch. 11 - Prob. 10ECh. 11 - Prob. 11ECh. 11 - Prob. 12ECh. 11 - Prob. 13ECh. 11 - Prob. 14ECh. 11 - Prob. 15ECh. 11 - Prob. 16ECh. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prob. 19PCh. 11 - Prob. 20PCh. 11 - Prob. 21PCh. 11 - Prob. 22PCh. 11 - Prob. 23PCh. 11 - Prob. 24PCh. 11 - Prob. 25PCh. 11 - Prob. 26C
Knowledge Booster
Similar questions
- please help with this problem thank youarrow_forwardIn 2025, Headland Corporation discovered that equipment purchased on January 1, 2023, for $62,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is 30%. Prepare Headland's 2025 journal entry to correct the error. Headland uses straight-line depreciation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit Creditarrow_forwardplease help with this problem thank youarrow_forward
- If provide Wrong Answer I give Dislikearrow_forwardplease help with this question thank youarrow_forwardMonty Corporation had the following 2025 income statement. Sales revenue $202,000 Cost of goods sold 132,000 Gross profit 70,000 Operating expenses (includes depreciation of $20,000) 51,000 Net income $19,000 The following accounts increased during 2025: Accounts Receivable $11,000, Inventory $12,000, and Accounts Payable $14,000. Prepare the cash flows from operating activities section of Monty's 2025 statement of cash flows using the direct method. MONTY CORPORATION Statement of Cash Flows-Direct Method (Partial) > > $ +A $arrow_forward
- On December 31, 2024, Teal Mountain Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Teal Mountain to make annual payments of $8,200 at the beginning of each year, starting December 31, 2024. The machine has an estimated useful life of 6 years and a $5,500 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Teal Mountain uses the straight-line method of depreciation for all of its plant assets. Teal Mountain's incremental borrowing rate is 11%, and the lessor's implicit rate is unknown. Click here to view factor tables. (a). (b) Compute the present value of the lease payments. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to O decimal places e.g. 5,275.) Present value of the lease paymentsarrow_forwardMarin Company is involved in four separate industries. The following information is available for each of the four industries. Operating Segment Total Revenue Operating Profit (Loss) Identifiable Assets W $59,160 $16,780 $155,846 10,190 2,550 77,923 Y 25,500 (3,240) 18,809 Z 7,150 1,210 16,122 $102,000 $17,300 $268,700 Determine which of the operating segments are reportable based on the: a. Revenue test. b. Operating profit (loss) test. C. Identifiable assets test. Reportable Segmentsarrow_forwardGet the Solidarrow_forward
- Sound Audio manufactures and sells audio equipment for automobiles. Engineers notified management in December 2024 of a circuit flaw in an amplifier that poses a potential fire hazard. An intense investigation indicated that a product recall is virtually certain, estimated to cost the company $2 million. The fiscal year ends on December 31. Required: 1. Should this loss contingency be accrued, only disclosed, or neither? 2. What loss, if any, should Sound Audio report in its 2024 income statement? 3. What liability, if any, should Sound Audio report in its 2024 balance sheet? 4. Prepare any journal entry needed. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 Prepare any journal entry needed. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). 1 No Event 1 General…arrow_forwardGeneral Accounting Questionarrow_forwardVan Beeber Corporation's comparative balance sheet and income statement for last year appear below: Comparative Balance Sheet Ending Balance Beginning Balance Cash and cash equivalents $ 58,000 $ 34,000 Accounts receivable 48,000 36,000 Inventory 56,000 67,000 Prepaid expenses 24,000 16,000 Long-term investments 280,000 220,000 Property, plant and equipment 580,000 580,000 Less accumulated depreciation 270,000 235,000 Total assets $ 776,000 $ 718,000 Accounts payable $ 32,000 $ 53,000 Accrued liabilities 38,000 21,000 Income taxes payable 61,000 31,000 Bonds payable 90,000 120,000 Common stock 80,000 60,000 Retained earnings 475,000 433,000 Total liabilities and stockholders’ equity $ 776,000 $ 718,000 Income Statement Sales $ 700,000 Cost of goods sold 360,000 Gross margin 340,000 Selling and administrative expense 210,000 Net operating income 130,000 Income taxes 39,000 Net income $ 91,000 The company declared and paid…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning