ACCT 505 Week 6 Quiz Segment Reporting and Relevant Costs for Decisions Essay
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(TCO D) Return on investment (ROI) is equal to the margin multiplied by
(TCO D) For which of the following decisions are opportunity costs relevantThe decision to make or buy a needed part
The desision to keep or drop a product line
(TCO D) Last year, the House of Orange had sales of $826,650, net operating income of $81,000, and operating assets of $84,000 at the beginning of the year and $90,000 at the end of the year.
What was the company’s turnover, rounded to the nearest tenth1.
(TCO D) Data for December concerning Dinnocenzo Corporation’s two major business segments-Fibers and Feedstocks-appear below:
Sales revenues, Fibers
Sales revenues, Feedstocks
Variable expenses, Fibers
Variable expenses, Feedstocks
Traceable fixed expenses, Fibers
Traceable fixed expenses, Feedstocks
Common fixed expenses totaled $314,000 and were allocated as follows: $129,000 to the Fibers business segment and $185,000 to the Feedstocks business segment.
Required:Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts.
(TCO D) Wryski Corporation had net operating income of $150,000 and average operating assets of $500,000. The company requires a return on investment of 19%.Required:i. Calculate the company’s current return on investment and residual income.ii. The company is investigating an investment of $400,000 in a project that will generate annual net operating income of $78,000. What is the ROI of the project? What is the residual income of the project? Should the company invest in this project3.