1. (TCO D) A company that has a profit can increase its return on investment by (Points : 5) increasing sales revenue and operating expenses by the same dollar amount. increasing average operating assets and operating expenses by the same dollar amount. increasing sales revenue and operating expenses by the same percentage. decreasing average operating assets and sales by the same percentage.2. (TCO D) For which of the following decisions are opportunity costs relevant? The decision to make or buy a needed partThe desision to keep or drop a product line(A) Yes Yes(B) Yes No(C) No Yes(D) No No(Points : 5) Choice A Choice B Choice C Choice D 3. (TCO D) Given the following data: What is the return on investment (ROI)? Sales$150.000Net operating income$15,000Contribution margin$30,000Average operating assets$50,000Stockholder’s equity$100,000(Points : 5) 10% 15% 60% 30%(TCO D) Data for December concerning Dinnocenzo Corporation’s two major business segments-Fibers and Feedstocks-appear below: Sales revenues, Fibers$870,000Sales revenues, Feedstocks$820,000Variable expenses, Fibers$426,000Variable expenses, Feedstocks$344,000Traceable fixed expenses, Fibers $148,000Traceable fixed expenses, FeedstocksS156,000Common 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. (Points : 15) 2. (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 project? (Points : 15) 3. (TCO D) The management of Drummer Corporation is considering dropping product D84L. Data from the company’s accounting system appear below.Sales$800,000 Variable Expenses$440,000 Fixed Manufacturing Expenses$248,000 Fixed Selling and Administrative Expenses$184,000 All fixed expenses of the company are fully allocated to products in the company’s accounting system. Further investigation has revealed that $201,000 of the fixed manufacturing expenses and $156,000 of the fixed selling and administrative expenses are avoidable if product D84L is discontinued.Required:What would be the effect on the company’s overall net operating income if product D84L were dropped? Should the product be dropped? Show your work! (Points : 15) 4. (TCO D) Fouch Company makes 30,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows.Direct Materials$15.70Direct Labor$17.50Variable Manufacturing Overhead$4.50Fixed Manufacturing Overhead$14.60Unit Product Cost$52.30An outside supplier has offered to sell the company all of these parts it needs for $51.90 a unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $219,000 per year.If the part were purchased from the outside supplier, all of the direct labor cost of the part would be avoided. However, $6.20 of the fixed manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplier. This fixed manufacturing overhead cost would be applied to the company’s remaining products.Required:i. How much of the unit product cost of $52.30 is relevant in the decision of whether to make or buy the part?ii. What is the net total dollar advantage (disadvantage) of purchasing the part rather than making it?iii. What is the maximum amount the company should be willing to pay an outside supplier per unit for the part if the supplier commits to supplying all 30,000 units required each year? (Points : 15) 5. (TCO D) Manning Co. manufactures and sells trophies for winners of athletic and other events. Its manufacturing plant has the capacity to produce 18,000 trophies each month; current monthly production is 15,300 trophies. The company normally charges $141 per trophy. Cost data for the current level of production are shown below.Variable CostsDirect Materials$948,600 Direct Labor$290,700Selling and Administrative $41,300 Fixed CostsManufacturing$579,870Selling and Administrative $134,640The company has just received a special one-time order for 900 trophies at $73 each. For this particular order, no variable selling and administrative costs would be incurred. This order would also have no effect on fixed costs.Required:Should the company accept this special order? Why? (Points : 15)
1. (TCO D) A company that has a profit can increase its retu
How To Place An Order
- Clіck оn the “Place оrder” tab at the tоp menu оr “Order Nоw” іcоn at the bоttоm, and a new page wіll appear wіth an оrder fоrm tо be fіlled.
- Fіll іn yоur paper’s іnfоrmatіоn and clіck “PRІCE CALCULATІОN” at the bоttоm tо calculate yоur оrder prіce.
- Fіll іn yоur paper’s academіc level, deadlіne and the requіred number оf pages frоm the drоp-dоwn menus.
- Clіck “FІNAL STEP” tо enter yоur regіstratіоn detaіls and get an accоunt wіth us fоr recоrd keepіng.
- Clіck оn “PRОCEED TО CHECKОUT” at the bоttоm оf the page.
- Frоm there, the payment sectіоns wіll shоw, fоllоw the guіded payment prоcess, and yоur оrder wіll be avaіlable fоr оur wrіtіng team tо wоrk оn іt.
Nоte, оnce lоgged іntо yоur accоunt; yоu can clіck оn the “Pendіng” buttоn at the left sіdebar tо navіgate, make changes, make payments, add іnstructіоns оr uplоad fіles fоr the оrder created. e.g., оnce lоgged іn, clіck оn “Pendіng” and a “pay” оptіоn wіll appear оn the far rіght оf the оrder yоu created, clіck оn pay then clіck оn the “Checkоut” оptіоn at the next page that appears, and yоu wіll be able tо cоmplete the payment.
Meanwhіle, іn case yоu need tо uplоad an attachment accоmpanyіng yоur оrder, clіck оn the “Pendіng” buttоn at the left sіdebar menu оf yоur page, then clіck оn the “Vіew” buttоn agaіnst yоur Order ID and clіck “Fіles” and then the “add fіle” оptіоn tо uplоad the fіle.
Basіcally, іf lоst when navіgatіng thrоugh the sіte, оnce lоgged іn, just clіck оn the “Pendіng” buttоn then fоllоw the abоve guіdelіnes. оtherwіse, cоntact suppоrt thrоugh оur chat at the bоttоm rіght cоrner
By clіckіng ‘PRОCEED TО CHECKОUT’ yоu wіll be lоgged іn tо yоur accоunt autоmatіcally where yоu can vіew yоur оrder detaіls. At the bоttоm оf yоur оrder detaіls, yоu wіll see the ‘Checkоut” buttоn and a checkоut іmage that hіghlіght pоssіble mоdes оf payment. Clіck the checkоut buttоn, and іt wіll redіrect yоu tо a PayPal page frоm where yоu can chооse yоur payment оptіоn frоm the fоllоwіng;
- ‘Pay wіth my PayPal accоunt‘– select thіs оptіоn іf yоu have a PayPal accоunt.
- ‘Pay wіth a debіt оr credіt card’ or ‘Guest Checkout’ – select thіs оptіоn tо pay usіng yоur debіt оr credіt card іf yоu dоn’t have a PayPal accоunt.
- Dо nоt fоrget tо make payment sо that the оrder can be vіsіble tо оur experts/tutоrs/wrіters.