Question
In: Accounting
Stargazer Services Co. is organized in three segments: Sky Mountain, Diamond View, and Star Party. Data...
Stargazer Services Co. is organized in three segments: Sky
Mountain, Diamond View, and Star Party. Data for the company and
for these segments follow
| Segments of Company | ||||||||||||||||||||
| Stargazer Services Co. |
Sky Mountain |
Diamond View |
Star Party |
|||||||||||||||||
| Service revenue | $ | $ | 400 | $ | 320 | $ | 160 | |||||||||||||
| Less: Variable costs | 180 | |||||||||||||||||||
| Segment contribution margin | $ | $ | $ | $ | ||||||||||||||||
| Less: Controllable fixed costs | 160 | 128 | 60 | |||||||||||||||||
| Controllable profit margin | $ | 352 | $ | 160 | $ | $ | 60 | |||||||||||||
| Less: Noncontrollable fixed costs | 80 | |||||||||||||||||||
| Segment profit margin | $ | 144 | $ | 68 | $ | $ | 24 | |||||||||||||
What are Diamond View’s controllable profit margin and segment profit margin?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Countywide Cable Services, Inc. is organized with three segments: Metro, Suburban, and Outlying. Data for these...
Countywide Cable Services, Inc. is organized with three
segments: Metro, Suburban, and Outlying. Data for these segments
for the year just ended follow.
Metro
Suburban
Outlying
Service revenue
$
1,080,000
$
880,000
$
480,000
Variable expenses
176,000
126,000
76,000
Controllable fixed expenses
389,000
309,000
139,000
Fixed expenses controllable by
others
206,000
176,000
66,000
In addition to the expenses listed above, the company has
$110,000 of common fixed expenses. Income-tax expense for the year
is $310,000.
Required:
Prepare...
Goodwin Company has three segments: 1, 2, and 3. Data regarding these segments follow: Segment 1...
Goodwin Company has three segments: 1, 2, and 3. Data regarding
these segments follow:
Segment 1
Segment
2 Segment
3
Contribution to indirect
expenses
$
432,000
$ 208,800
$
72,000
Assets directly used by and identified
with the segment
3,600,000
1,440,000
360,000
a. Calculate the return on investment for each segment. Rank
them from highest to lowest.
b. Assume the cost of capital is 10% for a segment. Calculate
the residual income for each...
Alternative problem E Goodwin Company has three segments: 1, 2, and 3. Data regarding these segments...
Alternative problem E Goodwin Company has three
segments: 1, 2, and 3. Data regarding these
segments follow:
Segment 1
Segment 2
Segment 3
Contribution to indirect expenses $
432,000 $ 208,800
$ 72,000
Assets directly used by and identified
with the segment
3,600,000
1,440,000 360,000
a. Calculate the return on investment for each segment. Rank
them from highest to lowest.
b. Assume the cost of capital is 10% for a segment. Calculate
the residual income...
Three divisions of Jameson Co. report the following sales and operating data: Fitness Training Spa Services...
Three divisions of Jameson Co. report the following sales and
operating data:
Fitness
Training
Spa
Services
Athletic
Wear
Sales
$
600,000
$
750,000
$
400,000
Average operating assets
$
200,000
$
250,000
$
100,000
Operating income
$
30,000
$
37,500
$
24,000
Minimum required rate of return
10
%
12
%
10
%
Required:
a.
Compute the ROI for the Athletic Wear division (state as a whole
number i.e. 17 for 17%, no decimals, no % sign)
Answer:
b.
Compute...
The beginning inventory at Funcky Party and data on purchases and sales for a three month...
The
beginning inventory at Funcky Party and data on purchases and sales
for a three month period ending March 31, 2016 are as follows:Jan 1
inventory 2,600 54.00 140,400
Jan.10 purchase 7000 62.00
434,000
Jan 28 sale 3,850 108.00
415.800
Jan 30 sale 1,300 109.00
140,400
Feb 5 sale 500 108.00
54,000
Feb 10 purchase 17,500 64.00
1,120,000
Feb16 sale 8,700 113.00
983,100
Feb 28 sale 8,600 113.00
971,800
March 5 purchase 14,000 65.00
918,400
Mar 14 sale 10,100 113.00...
Star Computer Services has the following three investment projects available this year. The firm's cost of...
Star Computer Services has the following three investment
projects available this year.
The firm's cost of capital is 7 %.
Project
X
Y
Z
Initial cost
–$20,000
–$30,000
–$30,000
Year 1 CF
10,000
15,000
12,000
Year 2 CF
11,000
14,000
13,000
Year 3 CF
12,000
13,000
14,000
Year 4 CF
13,000
12,000
15,000
a.
Which projects are acceptable? Why?
b.
What is your decision if the projects are mutually
exclusive?
The beginning inventory at Funky Party Supplies and data on purchases and sales for a three-month...
The beginning inventory at Funky Party Supplies and data on
purchases and sales for a three-month period ending March 31, 2016,
are as follows:
Date
Transaction
Number of Units
Per Unit
Total
Jan.
1
Inventory
2,500
$60.00
$150,000
10
Purchase
7,500
68.00
510,000
28
Sale
3,750
120.00
450,000
30
Sale
1,250
120.00
150,000
Feb.
5
Sale
500
120.00
60,000
10
Purchase
18,000
70.00
1,260,000
16
Sale
9,000
125.00
1,125,000
28
Sale
8,500
125.00
1,062,500
Mar.
5
Purchase
15,000
71.60
1,074,000...
Johnny Dang & Co. has designed three grillz (removable dental jewelry) models: Gold, Diamond, and Candy...
Johnny Dang & Co. has designed three grillz (removable
dental jewelry) models: Gold, Diamond, and Candy Paint. The prices
of the models are: $1,200, $8,000, and $9,000, respectively. The
variable costs for these models are: $400, $2,500, and $3,000,
respectively. The demand projected for each model for next year
are: 12,000, 3,500, and 2,000 units. Suppose they are now
considering the addition of another product called the “World
Series” priced at $6,000 with a variable cost of $1,500. Johnny
Dang...
Appendix: Adjustment Data on an End-of-Period Spreadsheet Alert Security Services Co. offers security services to business...
Appendix: Adjustment Data on an End-of-Period Spreadsheet
Alert Security Services Co. offers security services to business
clients. The trial balance for Alert Security Services Co. has been
prepared on the following end-of-period spreadsheet for the year
ended October 31, 2019. In addition, the data for year-end
adjustments are as follows:
Fees earned, but not yet billed, $34.
Supplies on hand, $8.
Insurance premiums expired, $42.
Depreciation expense, $17.
Wages accrued, but not paid, $17.
Enter the adjustment data, and place...
Appendix: Adjustment Data on an End-of-Period Spreadsheet Alert Security Services Co. offers security services to business...
Appendix: Adjustment Data on an End-of-Period Spreadsheet
Alert Security Services Co. offers security services to business
clients. The trial balance for Alert Security Services Co. has been
prepared on the following end-of-period spreadsheet for the year
ended October 31, 20Y5. In addition, the data for year-end
adjustments are as follows:
Fees earned but not yet billed, $18.
Supplies on hand, $4.
Insurance premiums expired, $22.
Depreciation expense, $9.
Wages accrued but not paid, $9.
Enter the adjustment data and place...
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