ACCT 505 Managerial Accounting Entire Course

Devry ACCT 505 Week 6 Quiz latest 2016
(TCO D) Return on investment (ROI) is equal to the margin multiplied by
(TCO D) For which of the following decisions are opportunity costs relevant?
(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 tenth?
(TCO D) Data for December concerning Dinnocenzo Corporation’s two major business segments-Fibers and
Feedstocks-appear below:
Sales
revenues, $870,000
Fibers
Sales
revenues, $820,000
Feedstocks
Variable
expenses, $426,000
Fibers
Variable
expenses, $344,000
Feedstocks
Traceable
fixed
$148,000
expenses,
Fibers
Traceable
fixed
S156,000
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 project?
(TCO D) Tjelmeland Corporation is considering dropping product S85U. Data from the company’s accounting system
appear below.
Sales $360,000
Variable
$158,000
Expenses