Multiple\u00a0Choice 3\tShort 5\t\u00a0\t\u00a0\u00a0\tQuestion\u00a01. Question\u00a0: (TCO\u00a0D)\u00a0Return\u00a0on\u00a0investment\u00a0(ROI)\u00a0is\u00a0equal\u00a0to\u00a0the\u00a0margin\u00a0multiplied\u00a0by\t\u00a0\t\u00a0\tQuestion\u00a02. Question\u00a0: (TCO\u00a0D)\u00a0For\u00a0which\u00a0of\u00a0the\u00a0following\u00a0decisions\u00a0are\u00a0opportunity\u00a0costs\u00a0relevant?\u00a0\t\u00a0 The\u00a0decision\u00a0to\u00a0make\u00a0or\u00a0buy\u00a0a\u00a0needed\u00a0part The\u00a0decision\u00a0to\u00a0keep\u00a0or\u00a0drop\u00a0a\u00a0product\u00a0line\t\u00a0\tQuestion\u00a03. Question\u00a0: (TCO\u00a0D)\u00a0Last\u00a0year,\u00a0the\u00a0House\u00a0of\u00a0Orange\u00a0had\u00a0sales\u00a0of\u00a0$826,650,\u00a0net\u00a0operating\u00a0income\u00a0of\u00a0$81,000,\u00a0and\u00a0operating\u00a0assets\u00a0of\u00a0$84,000\u00a0at\u00a0the\u00a0beginning\u00a0of\u00a0the\u00a0year\u00a0and\u00a0$90,000\u00a0at\u00a0the\u00a0end\u00a0of\u00a0the\u00a0year.\u00a0What\u00a0was\u00a0the\u00a0company’s\u00a0turnover,\u00a0rounded\u00a0to\u00a0the\u00a0nearest\u00a0tenth?\t\u00a0\t\u00a0\u00a0\tQuestion\u00a01. Question\u00a0: (TCO\u00a0D)\u00a0Data\u00a0for\u00a0December\u00a0concerning\u00a0Dinnocenzo\u00a0Corporation’s\u00a0two\u00a0major\u00a0business\u00a0segments-Fibers\u00a0and\u00a0Feedstocks-appear\u00a0below.\tSales\u00a0revenues,\u00a0Fibers $870,000\tSales\u00a0revenues,\u00a0Feedstocks $820,000\tVariable\u00a0expenses,\u00a0Fibers $426,000\tVariable\u00a0expenses,\u00a0Feedstocks $344,000\tTraceable\u00a0fixed\u00a0expenses,\u00a0Fibers $148,000\tTraceable\u00a0fixed\u00a0expenses,\u00a0Feedstocks $156,000\tCommon\u00a0fixed\u00a0expenses\u00a0totaled\u00a0$314,000\u00a0and\u00a0were\u00a0allocated\u00a0as\u00a0follows:\u00a0$129,000\u00a0to\u00a0the\u00a0Fibers\u00a0business\u00a0segment\u00a0and\u00a0$185,000\u00a0to\u00a0the\u00a0Feedstocks\u00a0business\u00a0segment.\t\u00a0\tRequired:\t\u00a0\tPrepare\u00a0a\u00a0segmented\u00a0income\u00a0statement\u00a0in\u00a0the\u00a0contribution\u00a0format\u00a0for\u00a0the\u00a0company.\u00a0Omit\u00a0percentages;\u00a0show\u00a0only\u00a0dollar\u00a0amounts.\u00a0\t\u00a0\t\u00a0\t\u00a0\tQuestion\u00a02. Question\u00a0: (TCO\u00a0D)\u00a0Wryski\u00a0Corporation\u00a0had\u00a0net\u00a0operating\u00a0income\u00a0of\u00a0$150,000\u00a0and\u00a0average\u00a0operating\u00a0assets\u00a0of\u00a0$500,000.\u00a0The\u00a0company\u00a0requires\u00a0a\u00a0return\u00a0on\u00a0investment\u00a0of\u00a019%.\u00a0\t\u00a0\tRequired:\t\u00a0\ti.\u00a0Calculate\u00a0the\u00a0company’s\u00a0current\u00a0return\u00a0on\u00a0investment\u00a0and\u00a0residual\u00a0income.\t\u00a0\tii.\u00a0The\u00a0company\u00a0is\u00a0investigating\u00a0an\u00a0investment\u00a0of\u00a0$400,000\u00a0in\u00a0a\u00a0project\u00a0that\u00a0will\u00a0generate\u00a0annual\u00a0net\u00a0operating\u00a0income\u00a0of\u00a0$78,000.\u00a0What\u00a0is\u00a0the\u00a0ROI\u00a0of\u00a0the\u00a0project?\u00a0What\u00a0is\u00a0the\u00a0residual\u00a0income\u00a0of\u00a0the\u00a0project?\u00a0Should\u00a0the\u00a0company\u00a0invest\u00a0in\u00a0this\u00a0project?\t\u00a0\t\u00a0\tii.\u00a0Return\u00a0on\u00a0investment\u00a0=\u00a0Net\u00a0operating\u00a0income\u00a0\u00a0\/\u00a0\u00a0Average\u00a0operating\u00a0assets\u00a0=\u00a0$78,000\u00a0\u00a0\/\u00a0\u00a0$400,000\u00a0=\u00a019.5%\t\u00a0\t\u00a0\t\u00a0\t\u00a0\tQuestion\u00a03. Question\u00a0: (TCO\u00a0D)\u00a0Tjelmeland\u00a0Corporation\u00a0is\u00a0considering\u00a0dropping\u00a0product\u00a0S85U.\u00a0Data\u00a0from\u00a0the\u00a0company’s\u00a0accounting\u00a0system\u00a0appear\u00a0below.\t\u00a0\t\u00a0\tSales $360,000\tVariable\u00a0Expenses $158,000\tFixed\u00a0Manufacturing\u00a0Expenses $119,000\tFixed\u00a0Selling\u00a0and\u00a0Administrative\u00a0Expenses $94,000\t\u00a0\tAll\u00a0fixed\u00a0expenses\u00a0of\u00a0the\u00a0company\u00a0are\u00a0fully\u00a0allocated\u00a0to\u00a0products\u00a0in\u00a0the\u00a0company’s\u00a0accounting\u00a0system.\u00a0Further\u00a0investigation\u00a0has\u00a0revealed\u00a0that\u00a0$55,000\u00a0of\u00a0the\u00a0fixed\u00a0manufacturing\u00a0expenses\u00a0and\u00a0$71,000\u00a0of\u00a0the\u00a0fixed\u00a0selling\u00a0and\u00a0administrative\u00a0expenses\u00a0are\u00a0avoidable\u00a0if\u00a0product\u00a0S85U\u00a0is\u00a0discontinued.\t\u00a0\tRequired:\t\u00a0\ti.\u00a0According\u00a0to\u00a0the\u00a0company’s\u00a0accounting\u00a0system,\u00a0what\u00a0is\u00a0the\u00a0net\u00a0operating\u00a0income\u00a0earned\u00a0by\u00a0product\u00a0S85U?\u00a0Show\u00a0your\u00a0work!\t\u00a0\tii.\u00a0What\u00a0would\u00a0be\u00a0the\u00a0effect\u00a0on\u00a0the\u00a0company’s\u00a0overall\u00a0net\u00a0operating\u00a0income\u00a0of\u00a0dropping\u00a0product\u00a0S85U?\u00a0Should\u00a0the\u00a0product\u00a0be\u00a0dropped?\u00a0Show\u00a0your\u00a0work!\t\u00a0\tQuestion\u00a04. Question\u00a0: (TCO\u00a0D)\u00a0Rosiek\u00a0Corporation\u00a0uses\u00a0part\u00a0A55\u00a0in\u00a0one\u00a0of\u00a0its\u00a0products.\u00a0The\u00a0company’s\u00a0accounting\u00a0department\u00a0reports\u00a0the\u00a0following\u00a0costs\u00a0of\u00a0producing\u00a0the\u00a04,000\u00a0units\u00a0of\u00a0the\u00a0part\u00a0that\u00a0are\u00a0needed\u00a0every\u00a0year.\u00a0\t\u00a0\tPer\u00a0Unit\tDirect\u00a0Materials $2.80\tDirect\u00a0Labor $6.30\tVariable\u00a0Overhead $8.50\tSupervisor’s\u00a0Salary $2.60\tDepreciation\u00a0of\u00a0Special\u00a0Equipment $6.80\tAllocated\u00a0General\u00a0Overhead $6.10\t\u00a0\tAn\u00a0outside\u00a0supplier\u00a0has\u00a0offered\u00a0to\u00a0make\u00a0the\u00a0part\u00a0and\u00a0sell\u00a0it\u00a0to\u00a0the\u00a0company\u00a0for\u00a0$32.30\u00a0each.\u00a0If\u00a0this\u00a0offer\u00a0is\u00a0accepted,\u00a0the\u00a0supervisor’s\u00a0salary\u00a0and\u00a0all\u00a0of\u00a0the\u00a0variable\u00a0costs,\u00a0including\u00a0direct\u00a0labor,\u00a0can\u00a0be\u00a0avoided.\u00a0The\u00a0special\u00a0equipment\u00a0used\u00a0to\u00a0make\u00a0the\u00a0part\u00a0was\u00a0purchased\u00a0many\u00a0years\u00a0ago\u00a0and\u00a0has\u00a0no\u00a0salvage\u00a0value\u00a0or\u00a0other\u00a0use.\u00a0The\u00a0allocated\u00a0general\u00a0overhead\u00a0represents\u00a0fixed\u00a0costs\u00a0of\u00a0the\u00a0entire\u00a0company.\u00a0If\u00a0the\u00a0outside\u00a0supplier’s\u00a0offer\u00a0were\u00a0accepted,\u00a0only\u00a0$4,000\u00a0of\u00a0these\u00a0allocated\u00a0general\u00a0overhead\u00a0costs\u00a0would\u00a0be\u00a0avoided.\u00a0In\u00a0addition,\u00a0the\u00a0space\u00a0used\u00a0to\u00a0produce\u00a0part\u00a0A55\u00a0could\u00a0be\u00a0used\u00a0to\u00a0make\u00a0more\u00a0of\u00a0one\u00a0of\u00a0the\u00a0company’s\u00a0other\u00a0products,\u00a0generating\u00a0an\u00a0additional\u00a0segment\u00a0margin\u00a0of\u00a0$26,000\u00a0per\u00a0year\u00a0for\u00a0that\u00a0product.\t\u00a0\tRequired:\t\u00a0\ti.\u00a0Prepare\u00a0a\u00a0report\u00a0that\u00a0shows\u00a0the\u00a0effect\u00a0on\u00a0the\u00a0company’s\u00a0total\u00a0net\u00a0operating\u00a0income\u00a0of\u00a0buying\u00a0part\u00a0A55\u00a0from\u00a0the\u00a0supplier\u00a0rather\u00a0than\u00a0continuing\u00a0to\u00a0make\u00a0it\u00a0inside\u00a0the\u00a0company.\t\u00a0\tii.\u00a0Which\u00a0alternative\u00a0should\u00a0the\u00a0company\u00a0choose?\t\u00a0\t\u00a0\t\u00a0\tQuestion\u00a05. Question\u00a0: (TCO\u00a0D)\u00a0A\u00a0customer\u00a0has\u00a0asked\u00a0Clougherty\u00a0Corporation\u00a0to\u00a0supply\u00a04,000\u00a0units\u00a0of\u00a0product\u00a0M97,\u00a0with\u00a0some\u00a0modifications,\u00a0for\u00a0$40.10\u00a0each.\u00a0The\u00a0normal\u00a0selling\u00a0price\u00a0of\u00a0this\u00a0product\u00a0is\u00a0$48.00\u00a0each.\u00a0The\u00a0normal\u00a0unit\u00a0product\u00a0cost\u00a0of\u00a0product\u00a0M97\u00a0is\u00a0computed\u00a0as\u00a0follows.\t\u00a0\tDirect\u00a0Materials $18.50\tDirect\u00a0Labor $1.20\tVariable\u00a0manufacturing\u00a0overhead $8.40\tFixed\u00a0\u00a0manufacturing\u00a0overhead $3.90\tUnit\u00a0product\u00a0cost $32.00\t\u00a0\tDirect\u00a0labor\u00a0is\u00a0a\u00a0variable\u00a0cost.\u00a0The\u00a0special\u00a0order\u00a0would\u00a0have\u00a0no\u00a0effect\u00a0on\u00a0the\u00a0company’s\u00a0total\u00a0fixed\u00a0manufacturing\u00a0overhead\u00a0costs.\u00a0The\u00a0customer\u00a0would\u00a0like\u00a0some\u00a0modifications\u00a0made\u00a0to\u00a0product\u00a0M97\u00a0that\u00a0would\u00a0increase\u00a0the\u00a0variable\u00a0costs\u00a0by\u00a0$5.70\u00a0per\u00a0unit\u00a0and\u00a0that\u00a0would\u00a0require\u00a0a\u00a0one-time\u00a0investment\u00a0of\u00a0$31,000\u00a0in\u00a0special\u00a0molds\u00a0that\u00a0would\u00a0have\u00a0no\u00a0salvage\u00a0value.\u00a0This\u00a0special\u00a0order\u00a0would\u00a0have\u00a0no\u00a0effect\u00a0on\u00a0the\u00a0company’s\u00a0other\u00a0sales.\u00a0The\u00a0company\u00a0has\u00a0ample\u00a0spare\u00a0capacity\u00a0for\u00a0producing\u00a0the\u00a0special\u00a0order.\t\u00a0\tRequired:\t\u00a0\tDetermine\u00a0the\u00a0effect\u00a0on\u00a0the\u00a0company’s\u00a0total\u00a0net\u00a0operating\u00a0income\u00a0of\u00a0accepting\u00a0the\u00a0special\u00a0order.\u00a0Show\u00a0your\u00a0work!<\/p>\n","protected":false},"excerpt":{"rendered":"
Multiple\u00a0Choice 3 Short 5 \u00a0 \u00a0\u00a0 Question\u00a01. Question\u00a0: (TCO\u00a0D)\u00a0Return\u00a0on\u00a0investment\u00a0(ROI)\u00a0is\u00a0equal\u00a0to\u00a0the\u00a0margin\u00a0multiplied\u00a0by \u00a0 \u00a0 Question\u00a02. Question\u00a0: (TCO\u00a0D)\u00a0For\u00a0which\u00a0of\u00a0the\u00a0following\u00a0decisions\u00a0are\u00a0opportunity\u00a0costs\u00a0relevant?\u00a0 \u00a0 The\u00a0decision\u00a0to\u00a0make\u00a0or\u00a0buy\u00a0a\u00a0needed\u00a0part The\u00a0decision\u00a0to\u00a0keep\u00a0or\u00a0drop\u00a0a\u00a0product\u00a0line \u00a0 Question\u00a03. Question\u00a0: (TCO\u00a0D)\u00a0Last\u00a0year,\u00a0the\u00a0House\u00a0of\u00a0Orange\u00a0had\u00a0sales\u00a0of\u00a0$826,650,\u00a0net\u00a0operating\u00a0income\u00a0of\u00a0$81,000,\u00a0and\u00a0operating\u00a0assets\u00a0of\u00a0$84,000\u00a0at\u00a0the\u00a0beginning\u00a0of\u00a0the\u00a0year\u00a0and\u00a0$90,000\u00a0at\u00a0the\u00a0end\u00a0of\u00a0the\u00a0year.\u00a0What\u00a0was\u00a0the\u00a0company’s\u00a0turnover,\u00a0rounded\u00a0to\u00a0the\u00a0nearest\u00a0tenth? \u00a0 \u00a0\u00a0 Question\u00a01. Question\u00a0: (TCO\u00a0D)\u00a0Data\u00a0for\u00a0December\u00a0concerning\u00a0Dinnocenzo\u00a0Corporation’s\u00a0two\u00a0major\u00a0business\u00a0segments-Fibers\u00a0and\u00a0Feedstocks-appear\u00a0below. Sales\u00a0revenues,\u00a0Fibers $870,000 Sales\u00a0revenues,\u00a0Feedstocks $820,000 Variable\u00a0expenses,\u00a0Fibers $426,000 Variable\u00a0expenses,\u00a0Feedstocks $344,000 Traceable\u00a0fixed\u00a0expenses,\u00a0Fibers $148,000 Traceable\u00a0fixed\u00a0expenses,\u00a0Feedstocks $156,000 Common\u00a0fixed\u00a0expenses\u00a0totaled\u00a0$314,000\u00a0and\u00a0were\u00a0allocated\u00a0as\u00a0follows:\u00a0$129,000\u00a0to\u00a0the\u00a0Fibers\u00a0business\u00a0segment\u00a0and\u00a0$185,000\u00a0to\u00a0the\u00a0Feedstocks\u00a0business\u00a0segment. \u00a0 Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-201293","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/201293","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=201293"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/201293\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=201293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=201293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=201293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}