Should the production and sale of racing bikes be discontinued? 1. Compute the Office Products Division’s ROI for this year. 2. Compute the Office Products Division’s ROI for the new product line by itself. 3. Compute the Office Products Division’s ROI for next year assuming that it performs the same as this year and adds […]
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Compute the margin for Alyeska Services Company? Question 1. Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sales $ 17,300,000 Net operating income $ 5,000,000 Average operating assets $ 35,300,000 Required:
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Individual Project One Template Part 1: Summarize what a contribution format income statement depicts, as compared to the traditional format. Please discuss Part 2: Using the following company data, show how the two income statement formats would look side by side. Traditional- versus contribution-format statements are as follows: Traditional format Sales 1.COGS Gross margin SG&A Profit
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Room cleaning supplies A particular hotel guest X 4. Flowers for the reception desk A particular hotel guest X 5. The wages of the doorman A particular hotel guest X 6. Room cleaning supplies The housecleaning department X 7. Fire insurance on the hotel building The hotel’s gym X 8. Towels used in the gym
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49. The following data pertains to activity and costs for two months: Inspection costs at one of Krivanek Corporation’s factories are listed below: Management believes that inspection cost is a mixed c ost that depends on units produced. Variable cost per unit = Change in cost
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The following data pertains to activity and utility costs for two recent years: Variable cost per unit = Change in cost Change in activity = $3,000 4,000 units = $0.75 per unit Fixed cost = Total cost – Variable cost element = $12,000 – ($0.75 per unit
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The total mixed cost line can be expressed as an equation: Y = a + bX Where: Y=The total mixed cost. a=The total fixed cost (the vertical intercept of the line). b=The variable cost per unit of activity (the slope of the line). X=The level of activity. Sheet1 The total mixed cost line can be
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The following costs were incurred in September: Behavior of Cost (within the relevant range) CostIn TotalPer Unit VariableTotal variable cost IncreaseVariable cost per unit and decrease in proportionremains constant. to changes in the activity level. FixedTotal fixed cost is not affectedFixed cost per unit decreases by changes in the activityas the activity
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In making the decision to buy the model 230 machine rather than the model 330 machine, the differential cost was: A. $34,000 B. $38,000 C. $4,000 D. $67,000 Review Questions M/C B. $38,000 Differential cost = $323,000 – $285,000 = $38,000 Review Questions M/C 81. In making the decision to buy the model 230 machine rather than the
mixed cost is partially variable and partially fixed. Review Questions T/F True Review Questions M/C Temblador Corporation purchased a machine 7 years ago for $319,000 when it launched product E26T. Unfortunately, this machine has broken down and cannot be repaired. The machine could be replaced by a new model 330 machine
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