Compute the residual income for each division

beplay体育怎么安装Managerial Accounting
Reference no: EM13170339

Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow (in millions of yen, denoted by =Y):

Division

Osaka Yokohama

Sales

=Y3,000,000

=Y9,000,000

Net operating income

=Y210,000

=Y720,000

Average operating assets

=Y1,000,000

=Y4,000,000

1) For each division, compute the return on investment (ROI) in terms of margin and turnover. Where necessary, carry computations to two decimal places.

2) Assume that the company evaluates performances using residual income and that the minimum required rate of return for any division is 15%. Compute the residual income for each division.

3)是横滨的更大数量的剩余收益an indication that it is better managed?

Reference no: EM13170339

Previous Q& A

Prepare a flexible budget performance report for july

Prepare a flexible budget performance report for July and which of the variances should be of concern to management? Explain.

Prepare the companys cash budget

Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded and prepare the company's cash budget for the upcoming fiscal year.

Prepare a schedule of expected cash collections from sales

Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter and assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date.

What is the month break-even point in units

What is the month break-even point in units sold and in sales dollars and without resorting to computations, what is the total contribution margin at the break-even point?

Redo the companys income statement

Using the high- low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense.

Compute top notch incs tax liability

Top Notch pays New Zealand taxes of $114,000. Assuming a us tax rate of 35% compute Top Notch Inc's tax liability after any allowable foreign tax credits.

What is the shadow price for electronic components

What is the shadow price for Electronic Components? Explain to management how they might use this to increase profits? Calculate the upper limit for which this shadow price is valid. What happens when the upper limit is breached?

State the partial pressure of oxygen

The solubility of oxygen in water is 5.00M when the partial pressure of oxygen is 1.00 atm. Calculate the solubility of oxygen in water in contact with air

Explain what is the mass of water that solidifies

If the process occurs adiabatically and at constant (atmospheric) pressure (a) what is the mass of water that solidifies and (b) what is the change in entropy of the system?

Similar problems is a common assumption

The notion that the people who can help you best are those who have similar problems is a common assumption in

Reviews

Write a Review

Similar Q& A

Identify two of most successful companies or organization

Identify two of the most successful companies or organizations today, in your opinion. Explain why they are so successful (your answer should consider business strategy and core competencies).

Understanding of cost reallocation

Explain the process of allocation of costs in this organization. Do you agree with the approach? Why or why not?. Identify those situations when common costs are allocated.

弹性预算分析和strategic-budget肛门ysis

Why might managers find out a flexible budget analysis more informative than the strategic-budget analysis? Describe your rationale. How might a manager gain insight in the causes of the flexible-budget variance for direct materials?

Discussion-cost behaviour and cost-volume-profit analysis

Calculate the total contribution margin for 2000 and contribution margin percentage. Describe why the contribution margin differs from the gross margin.

Determination of cost variances

Gridiron Merchandising anticipated selling 27,000 units of a major product and paying sales commissions of $6 per unit. Actual sales and sales commissions totaled 27,500 units and $171,400, respectively.

Management accounting system in walmart

分析了沃尔玛的会计和金融practices. This must be a formal business report which provides both specific processes and strategies involving budgeting, costing, capital decision making, capital acquisition, and cost of capital str..

Performance measurement from a balanced scorecard

Write a memo to your senior staff advising them of your desire to approach performance measurement from a balanced scorecard perspective.

Cost volume profit analyses

After reviewing its cost structure (variable costs of £7.50 per unit and monthly fixed costs of £60,000) and its potential market, the Forecast Company established what it considered to be a reasonable selling price.

Discussion on product costing

Some firms have a lot of fixed costs and a few variable costs, while other firms are configured the other way around. What effect do you think the existence of a high proportion of fixed costs has on the desirability of using ABC methods?

Question on net cost of call premium

Buchanan Corp. is refunding $12 million worth of 10% debt. The corporation's tax rate is 35%. The call premium is 9%. What is the net cost of the call premium? Please show ALL work of how the answer was composed.

Question on segment margin

Martin Company is a two-division firm and has following information available for this year:

Cost of goods manufactured-cost of goods sold

During the year, the company purchased $100,000 of raw material and spent $340,000 on direct labor. Other data: Manufacturing overhead incurred $450,000; sales, $1,560,000; selling and administrative expenses, $90,000; income tax rate, 30%.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

beplay安卓下载

Baidu