ACC 560 Week 6 Assignment
P10-5A Dinkle Manufacturing Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2008, and relevant budget data are as follows.
Actual Comparison with Budget
Sales $1,500,000 $100,000 favorable
Variable cost of goods sold 700,000 60,000 unfavorable
Variable selling and administrative expenses 125,000 25,000 unfavorable
Controllable fixed cost of goods sold 170,000 On target
Controllable fixed selling and administrative expenses 80,000 On target
Average operating assets for the year for the Home Division were $2,500,000 which was also the budgeted amount.
Instructions
(a) Prepare a responsibility report for the Home Division.
(b) Evaluate the manager’s performance. Which items will likely be investigated by top management?
(c) Compute the expected ROI in 2009 for the Home Division, assuming the following independent changes to actual data.
1. Variable cost of goods sold is decreased by 6%.
2. Average operating assets are decreased by 10%.
3. Sales are increased by $200,000, and this increase is expected to increase contribution margin by $90,000.
Click here for the solution: Dinkle Manufacturing Company manufactures a variety of tools and industrial equipment
Showing posts with label tools. Show all posts
Showing posts with label tools. Show all posts
Friday, September 25, 2015
Saturday, August 15, 2015
Elliot’s Escargots sells commercial and home snail extraction tools and serving pieces
Elliot’s Escargots sells commercial and home snail extraction tools and serving pieces. Currently, the snail extraction line of products takes up approximately 50 percent of the company’s retail floor space. The CEO of Elliot’s wants to decide if the company should continue offering snail extraction tools or focus only on serving pieces. If the snail extraction tools are dropped, salaries and other direct fixed costs can be avoided and serving piece sales would increase by 13 percent. Allocated fixed costs are assigned based on relative sales.
Snail Extraction Serving
Tools Pieces Total
Sales $1,200,000 $800,000 $2,000,000
Less cost of goods sold 700,000 500,000 1,200,000
Contribution margin 500,000 300,000 800,000
Less direct fixed costs:
Salaries 175,000 175,000 350,000
Other 60,000 60,000 120,000
Less allocated fixed costs:
Rent 14,118 9,882 24,000
Insurance 3,529 2,471 6,000
Cleaning 4,117 2,883 7,000
Executive salary 76,470 53,530 130,000
Other 7,058 4,942 12,000
Total costs 340,292 308,708 649,000
Net income $159,708 ($ 8,708) $151,000
Prepare an incremental analysis in good form to determine the incremental effect on profit of discontinuing the snail extraction tool line.
Click here for the solution: Elliot’s Escargots sells commercial and home snail extraction tools and serving pieces
Snail Extraction Serving
Tools Pieces Total
Sales $1,200,000 $800,000 $2,000,000
Less cost of goods sold 700,000 500,000 1,200,000
Contribution margin 500,000 300,000 800,000
Less direct fixed costs:
Salaries 175,000 175,000 350,000
Other 60,000 60,000 120,000
Less allocated fixed costs:
Rent 14,118 9,882 24,000
Insurance 3,529 2,471 6,000
Cleaning 4,117 2,883 7,000
Executive salary 76,470 53,530 130,000
Other 7,058 4,942 12,000
Total costs 340,292 308,708 649,000
Net income $159,708 ($ 8,708) $151,000
Prepare an incremental analysis in good form to determine the incremental effect on profit of discontinuing the snail extraction tool line.
Click here for the solution: Elliot’s Escargots sells commercial and home snail extraction tools and serving pieces
Saturday, July 11, 2015
TV commercials, newspaper and magazine ads, the tools that carry and deliver the “image” of a marketed product or service, are known as its
1. TV commercials, newspaper and magazine ads, the tools that carry and deliver the “image” of a marketed product or service, are known as its:
2. Given a unique product or service and a small, focused target market, a strategy designed to set a product or service apart from competitors is known as:
3. According to economic theory, unlimited access to information which leads to perfect market knowledge of price structures will tend to cause prices to:
4. For an online marketing effort involving a product (after the selection of a good product name) the URL for your Web site should be:
5. During market segmentation, the investigation of prospect clusters according to lifestyle and self-concept is referred to as:
6. When using electronic tools, logistics (distribution) functions should be:
7. The objective and task method in which the marketer delineates the marketing for the period and then calculates a cost for each task is also known as:
8. One effective method for online marketers to increase consumer credibility in a Web site or product line is to:
9. Good online marketers will be particularly aware of how customers will use their products and the specific advantages and positive outcomes obtained from the use of the products by doing a:
10. Since online media fit best into the direct marketing category, business on the WWW may have the effect of:
11. The implementation of marketing programs means:
12. "Coupon Keys" are:
13. Attracting new customers is about __________ times more costly than selling to and servicing existing customers.
14. Marketers learn about customers' concerns by:
15. SOQ is:
16. Marketing managers should be briefed on a program’s progress:
17. In planning for a 12-month period:
18. Marketing planning:
19. The one invisible marketing "P" that marketers are bringing into the light is:
20. Measurement parameters for judging a salesperson’s performance include:
Click here for the solution: TV commercials, newspaper and magazine ads, the tools that carry and deliver the “image” of a marketed product or service, are known as its
2. Given a unique product or service and a small, focused target market, a strategy designed to set a product or service apart from competitors is known as:
3. According to economic theory, unlimited access to information which leads to perfect market knowledge of price structures will tend to cause prices to:
4. For an online marketing effort involving a product (after the selection of a good product name) the URL for your Web site should be:
5. During market segmentation, the investigation of prospect clusters according to lifestyle and self-concept is referred to as:
6. When using electronic tools, logistics (distribution) functions should be:
7. The objective and task method in which the marketer delineates the marketing for the period and then calculates a cost for each task is also known as:
8. One effective method for online marketers to increase consumer credibility in a Web site or product line is to:
9. Good online marketers will be particularly aware of how customers will use their products and the specific advantages and positive outcomes obtained from the use of the products by doing a:
10. Since online media fit best into the direct marketing category, business on the WWW may have the effect of:
11. The implementation of marketing programs means:
12. "Coupon Keys" are:
13. Attracting new customers is about __________ times more costly than selling to and servicing existing customers.
14. Marketers learn about customers' concerns by:
15. SOQ is:
16. Marketing managers should be briefed on a program’s progress:
17. In planning for a 12-month period:
18. Marketing planning:
19. The one invisible marketing "P" that marketers are bringing into the light is:
20. Measurement parameters for judging a salesperson’s performance include:
Click here for the solution: TV commercials, newspaper and magazine ads, the tools that carry and deliver the “image” of a marketed product or service, are known as its
Subscribe to:
Posts (Atom)