Megatronics Corporation, a massive retailer of electronic products, is organized in four separate divisions. The four divisional managers are evaluated at year-end, and bonuses are awarded based on ROI. Last year, the company as a whole produced a 13 percent return on its investment.

During the past week, management of the company’s Northeast Division was approached about the possibility of buying a competitor that had decided to redirect its retail activities. (If the competitor is acquired, it will be acquired at its book value.) The data that follow relate to recent performance of the Northeast Division and the competitor:

Management has determined that in order to upgrade the competitor to Megatronics’ standards, an additional $150,000 of invested capital would be needed.

Required:

1. Compute the current ROI of the Northeast Division and the division’s ROI if the competitor is acquired.

1A. If divisional management is being evaluated on the basis of ROI, will the Northeast Division likely pursue acquisition of the competitor?

1C. Compute the ROI of the competitor as it is now and after the intended upgrade.

1D. If ROI is used as the basis for evaluation, would Megatronics Corporation likely be in favor of the acquisition of the competitor?

1E. Calculate the Northeast Division's ROI after acquisition of competitor but before upgrading.

1F. Assume that Megatronics uses residual income to evaluate performance and desires a 10 percent minimum return on invested capital. Compute the current residual income of the Northeast Division and the division’s residual income if the competitor is acquired.

1G. If divisional management is being evaluated on the basis of residual income, will the Northeast Division likely pursue acquisition of the competitor?

Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria’s owner has determined that the shop has two major cost drivers—the number of pizzas sold and the number of deliveries made.

Data concerning the pizzeria’s costs appear below:

In November, the pizzeria budgeted for 2,190 pizzas at an average selling price of $20 per pizza and for 190 deliveries.

Data concerning the pizzeria’s operations in November appear below:

Required:

1. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Sturdley Corporation has 20,000 shares of $100 par value, 7% cumulative preferred stock outstanding and 100,000 of its $1 par value common stock outstanding. In their first four years of operation they paid the following cash dividends:

2016 -0-

2017 $240,000

2018 $280,000

2019 $180,000

Determine the total cash dividends paid during the four years with preferred stock as cumulative and then calculate it again with the preferred stock as non-cumulative.

Khaleed Manufacturing, a new company producing baby toys gives the following standard information: As per the following information, calculate labor variances. Standard hours per unit 3.5hrs. Standard rate per hour $35 Actual units produced 1,000units while actual labor hours is 5,000hrs at a total cost of $135,000. The company recorded idle hours of 450.

a) Labor Cost Variance b) Labor Rate Variance c) Labor Efficiency variance d) Idle Time Variance

The Regal Cycle Company manufactures three types of bicycles�a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes Racing Bikes Sales $ 919,000 $ 261,000 $ 404,000 $ 254,000 Variable manufacturing and selling expenses 461,000 113,000 195,000 153,000 Contribution margin 458,000 148,000 209,000 101,000 Fixed expenses: Advertising, traceable 69,600 8600 40300 20700 Depreciation of special equipment 43,600 20,200 7700 15700 Salaries of product-line managers 115,200 40,100 38800 36300 Allocated common fixed expenses* 183,000 52,200 80800 50800 Total fixed expenses 412,000 121,000 167600 123500 Net operating income (loss) $ 45,800 $ 26,900 $ 41400 $ (22,500) home / study / math / other math / other math questions and answers / the regal cycle company manufactures three types of bicycles�a dirt bike, a mountain bike, ... Question: The Regal Cycle Company manufactures three types of bicycles�a dirt bike, a mountain bike, and a ... (26 bookmarks) The Regal Cycle Company manufactures three types of bicycles�a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes Racing Bikes Sales $ 300,000 $ 90,000 $ 150,000 $ 60,000 Variable manufacturing and selling expenses 120,000 27,000 60,000 33,000 Contribution margin 180,000 63,000 90,000 27,000 Fixed expenses: Advertising, traceable 30,000 10,000 14,000 6,000 Depreciation of special equipment 23,000 6,000 9,000 8,000 Salaries of product-line managers 35,000 12,000 13,000 10,000 Allocated common fixed expenses* 60,000 18,000 30,000 12,000 Total fixed expenses 148,000 46,000 66,000 36,000 Net operating income (loss) $ 32,000 $ 17,000 $ 24,000 $ (9,000) *Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. Required: 1a. What is the impact on net operating income by discontinuing racing bikes? (Decreases should be indicated by a minus sign.) 1b. Should production and sale of the racing bikes be discontinued? Yes No 2a. Prepare a segmented income statement. 2b. Would a segmented income statement format be more usable to management in assessing the long-run profitability of the various product lines.

Janes Paper Products (JPP) manufactures inkjet, laser and specialty papers for the consumer market. JPP uses a process costing system.

Information for February in the first processing department (Mixing) is as follows.

Required:

1. Using Weighted-Average Method compute equivalent units for direct material and conversion costs. Prepare Cost of Production Schedule that includes the cost per equivalent units for direct material and conversion costs, and summary of costs to account for and the cost of units transferred and the cost of the units in ending work in process.

2. Using FIFO Method compute equivalent units for direct material and conversion costs. Prepare Cost of Production Schedule that includes the cost per equivalent units for direct material and conversion costs, and summary of costs to account for and the cost of units transferred and the cost of the units in ending work in process.

Scientific method

Read the following story carefully, then answer all the questions that appear at the end of it. [It is a hypothetical study, raised by the teacher, I present all the available information. Than you for your help]

Ana was looking for a project for her school's Science Fair. You read in a scientific journal about a study in which chickens were fed antibiotics. According to the study, chickens that were fed antibiotics grew faster than those that were not fed antibiotics.

Ana thought about this experiment for a long time. After reading more about the topic in the library, she decided to design an experiment using shrimp. She selected a species that grows to a maximum size of 10 centimeters and mature in approximately 6 to 8 weeks. The female produces 100 to 400 eggs that hatch in 2 to 3 weeks. Ana's teacher helped her order 144 shrimp and Ana obtained the antibiotic Aureomycin from her doctor.

When the shrimp arrived, Ana divided them into 6 groups, each group had 12 males and 12 females. She placed each group in identical glass containers, gave everyone the same food, and changed the water every 7 days. The 6 groups were treated in the same way except that different doses of the antibiotic were added to 5 containers each time the water was changed, as indicated in the following table:

Weekly before changing the water, the average size for each group was noted. These data are presented in the following table.

1. Define the problem
2. Express a possible hypothesis
3. Identify the variables: independent and dependent, and 5 variables under control
4. Is there a control group in this research? What function does it have?
5. Underline all the sentences that are part of the experimental design.
6. Analyze the data, what is the conclusion?

Condensed financial data of Flounder Company for 2017 and 2016 are presented below.

Additional information:

During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017.

Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

You are a manager who works for Ross, Sigh LLP, a local accounting firm. Your client is Transport Logistics (TL) transports hazardous materials from disposal facilities located in Alberta to a secure area.

Upon review of the minutes of the Board of Directors, you discover that TL has set up a higher than historical average provision for contingent liabilities related to spills that occurred while transporting the hazardous materials.

Required: Discuss 5 audit procedures performed during the completion of the audit phase that you would perform pertaining to contingent liabilities for TL.

Burns Corporation's net income last year was $99,200. Changes in the company's balance sheet accounts for the year appear below:

The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $4,300.

Required:

a. Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.)

b. Prepare the investing activities section of the company's statement of cash flows for the year.

c. Prepare the financing activities section of the company's statement of cash flows for the year.

Curtain Co. paid dividends of $1,500; $3,000; and $4,000 during Year 1, Year 2, and Year 3, respectively. The company had 700 shares of 3.5%, $100 par value preferred stock outstanding that paid a cumulative dividend. The amount of dividends received by the common shareholders during Year 3 would be:

• 2,450.

• $1,500.

• $950.

• $1,150.

During Heaton Company’s first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 Sales (@ $61 per unit) $ 915,000 $ 1,525,000 Cost of goods sold (@ $36 per unit) 540,000 900,000 Gross margin 375,000 625,000 Selling and administrative expenses* 294,000 324,000 Net operating income $ 81,000 $ 301,000 * $3 per unit variable; $249,000 fixed each year. The company’s $36 unit product cost is computed as follows: Direct materials $ 6 Direct labor 13 Variable manufacturing overhead 2 Fixed manufacturing overhead ($300,000 ÷ 20,000 units) 15 Absorption costing unit product cost $ 36 Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 20,000 20,000 Units sold 15,000 25,000 Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year.