Please do not give solution in image format thanku Optimus Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Eachdivision is an investment center. Operating data for the Home Division for the year ended December 31, 2020, and relevant budget dataare as follows.SalesActualVariable cost of goods soldVariable selling and administrative expensesControllable fixed cost of goods sold169,000Controllable fixed selling and administrative expenses 81,000(1)(2)(3)$1,400,000Variable cost of goods sold is decreased by 6%.Average operating assets are decreased by 20.0%.670,000124,000Comparison with Budget$100,00056,00026,000On targetOn targetfavorableAverage operating assets for the year for the Home Division were $2,000,000 which was also the budgetedCompute the expected ROIin 2020 for the Home Division, assuming the following independent changes to actual data. (Round ROI to 2 decimal places, e.g.1.57%.)Sales are increased by $199,000, and this increase is expected to increase contribution marginby $86,000.unfavorableunfavorableThe expectedROI%%

RETURN ON INVESTMENT Return on Investment is the Ratio between Net Income & Average Operating…

Optimus 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, 2020, and relevant budget data are as follows. Sales Actual $1,400,000 Variable cost of goods sold Variable selling and administrative expenses Controllable fixed cost of goods sold 169,000 Controllable fixed selling and administrative expenses 81,000 (1) (2) (3) 670,000 124,000 Comparison with Budget $100,000 56,000 26,000 On target On target favorable Variable cost of goods sold is decreased by 6%. Average operating assets are decreased by 20.0%. Sales are increased by $199,000, and this increase is expected to increase contribution margin by $86,000. unfavorable Average operating assets for the year for the Home Division were $2,000,000 which was also the budgeted Compute the expected ROI in 2020 for the Home Division, assuming the following independent changes to actual data. (Round ROI to 2 decimal places, e.g. 1.57%.) unfavorable The expected ROI % %

Optimus 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, 2020, and relevant budget data are as follows. Sales Actual $1,400,000 Variable cost of goods sold Variable selling and administrative expenses Controllable fixed cost of goods sold 169,000 Controllable fixed selling and administrative expenses 81,000 (1) (2) (3) 670,000 124,000 Comparison with Budget $100,000 56,000 26,000 On target On target favorable Variable cost of goods sold is decreased by 6%. Average operating assets are decreased by 20.0%. Sales are increased by $199,000, and this increase is expected to increase contribution margin by $86,000. unfavorable Average operating assets for the year for the Home Division were $2,000,000 which was also the budgeted Compute the expected ROI in 2020 for the Home Division, assuming the following independent changes to actual data. (Round ROI to 2 decimal places, e.g. 1.57%.) unfavorable The expected ROI % %

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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Optimus 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, 2020, and relevant budget data are as follows. Actual Comparison with Budget Sales $1,400,000 $100,000 favorable Variable cost of goods sold 680, 000 56,000 unfavorable Variable selling and administrative expenses 124,000 24,000 unfavorable Controllable fixed cost of goods sold 169,000 On target Controllable fixed selling and administrative expenses 83,000 On target Average operating assets for the year for the Home Division were $2,000,000 which was also the budgeted amount. Prepare a responsibility report for the Home Division. (List variable costs before fixed costs. Round ROI to 2 decimal places, e.g. 1.57% .) OPTIMUS COMPANY Home Division Responsibility Report For the Year Ended December 31, 2020
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Bonita 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, 2020, and relevant budget data are as follows. Actual Comparison with Budget Sales $1,399,000 $101,000 favorable Variable cost of goods sold 680,000 55,000 unfavorable Variable selling and administrative expenses 124,000 25,000 unfavorable Controllable fixed cost of goods sold 171,000 On target Controllable fixed selling and administrative expenses 81,000 On target Average operating assets for the year for the Home Division were $2,000,000 which was also the budgeted amount. Compute the expected ROI in 2020 for the Home Division, assuming the following independent changes to actual data. (Round ROI to 2 decimal places, e.g. 1.57%.) The expected ROI (1) Variable cost of goods sold is…
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Question : SMAN Company manufactures two products M1 and Z1. Its sales department has three divisions: Salalah, Raysut and Mirbat. Initial estimates for the sales budgets for the year ending 31 December 2021 which are based on the assessments of the divisional executives are as follows; Product M1 : Salalah 45,000 units: Raysut 110,000 units and Mirbat: 25,000 units Product Z1: Salalah 70,000 units: Raysut 82,000 units and Mirbat:0 Sales Prices: M1: 3 OMR and Z1= 4 OMR in all areas. Arrangements are made for the extensive advertising of product M1 and Z1 and it is estimated that Salalah division sales will increase by 30,000 units. Arrangements are also made to advertise and distribute product z1 in the Mirbat area in the second half of 2021 when sales are expected to be 100,000 units. Since the estimated sales of the Raysut division represented an unsatisfactory target, it is agreed to increase both the estimates by 15 %. Prepare a sales budget for the year to 31…
Tabouk’s Manufacturing Company has two divisions: Garden Division and Farm Division. The following report is for the most recent operating period of 2019: Total Company Garden Division Farm Division Sales revenue $390,000 $270,000 $120,000 Variable expenses 95,400 59,400 36,000 Contribution margin 294,600 210,600 84,000 Traceable fixed expenses 223,000 165,000 58,000 Division profit margin 71,600 $45,600 $26,000 Common fixed expense 46,800 Net operating income $24,800 As a manager at the company your responsibilities are planning and directing the company, you are required to: 1-What would be the company's overall net operating income if the company operated at its two division's break-even points?
Question 4: Dhofar Company manufactures two products M1 and Z1. Its sales department has three divisions: Salalah, Raysut and Mirbat Initial estimates for the sales budgets for the year ending 31 December 2021 which are based on the assessments of the divisional executives are as follows; Product M1: Salalah 45,000 units: Raysut 110,000 units and Mirbat: 25,000 units Product Z1: Şalalah 70,000 units: Raysut 82,000 units and Mirbat:0 Sales Prices: M1: 3 OMR and Z1= 4 OMR in all areas. Arrangements are made for the extensive advertising of product M1 and Z1 and it is estimated that Salalah division sales will increase by 30,000 units. Arrangements are also made to advertise and distribute product z1 in the Mirbat area in the second half of 2021 when sales are expected to be 100,000 units. Since the estimated sales of the Raysut division represented an unsatisfactory target, it is agreed to increase both the estimates by 15 %. Prepare a sales budget for the year to 31 December 2021.
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A company two articles L and M and its sales department has three divisions: A, B & C. Preliminary sales budgets for the year December 2018. Based on the assessments of the divisions, the following information is given Product L: A 15000 units, B 17500 units and C 22500 units Product M: A 22000 units, B 24500 units and C – Nil Sales price L is RO 3.75 and M is RO 4.5 in all the divisions Arrangements are made for the extensive advertising of product L and M and it is estimated that A division will increase by 12000 units. Arrangements are also made to advertise and distribute product M in Division C and sales are expected to be 35000 units. Prepare a sales budget for the year 2018.
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