Here are 3 questions for Managerial Accounting due by March 17, 2015. I’ve provided them in a Word document. Unit7.docx
Unformatted Attachment Preview
1. The balance sheet for the Sand Dollar division of Stellar Company shows that for 2011 it had
operating assets at the beginning of the year of $250,000 and $300,000 at the end of the year.
During the year, the division had $14,000 of net operating income on sales of $450,000.
A. What is the ROI of the division?
B. If sales were $600,000 and net operating income was $30,000 and operating assets at the
end of the year were $350,000, what would ROI be?
2. Bienville Company has two operating divisions, and the financial information
for each division for 2010 is:
Top Division Bottom Division
Average operating assets
Net operating income
Property, plant and equipment
Compute ROI for each division. Which manager seems to be doing the best job?
Why? Does ROI necessarily the best measure of the performance of these
3. Magic Lawnmower Company assembles lawnmowers from a number of
different parts. Some of those parts are manufactured by Magic Lawnmower and
some of the parts are purchased from other companies. The vendor for the
blades that Magic Lawnmower uses has just increased the price of blades to $10
per blade for the first 5,000 blades and $9 per blade for all blades ordered during
the year in excess of 5,000. Magic Lawnmower expects to use 7,500 blades this
year. Magic lawnmower can make the blades for the following unit costs:
Variable manufacturing overhead
If Magic lawnmower elects to make the blades rather than buy the blades from its
vendor, what are the opportunity costs? If Magic lawnmower elects to make the
blades rather than buy them, what are the opportunity costs?
Purchase answer to see full
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more