(solution) Any help regarding this problem would be much appreciated. Thanks

(solution) Any help regarding this problem would be much appreciated. Thanks

Any help regarding this problem would be much appreciated. Thanks in advance!

B-22.02 JRTC is evaluating results for three separate business segments under his control.
Selected financial information for each segment follows: Operating
Income Sales
Segment A $ 2,000,000 $ 100,000 Average
Assets
$ 2,500,000 Segment B 3,500,000 450,000 6,000,000 Segment C 1,600,000 160,000 2,100,000 Rank order the three segments based on
"margin," "turnover," and "return on
investment." How is it possible that the rankings differ based on which evaluative model
is used? Name:
Date: B-22.02 Section: Operating
Income Sales
Segment A $ 2,000,000 $ 100,000 Average Assets
$ 2,500,000 Segment B 3,500,000 450,000 6,000,000 Segment C 1,600,000 160,000 2,100,000 Margin (as used in ROI )
Segment A Segment B Segment C Segment A Segment B Segment C Segment A Segment B Segment C Turnover (as used in ROI) ROI B-22.03 Jiffy Print is a retailer of printers and ink cartridges. The printers carry a low profit margin
and the ink cartridges a very high margin. Following is an aggregated budgeted
performance plan for 2015.
Budgeted Performance Report
All Stores
For the Year Ending December 31, 2015
Sales
Printers $ Cartridges
Total sales 4,500,000
4,500,000 $ 9,000,000 $ 4,000,000 Less: Variable expenses
Printers
Cartridges 1,500,000 Total variable expenses $ 5,500,000 Contribution margin $ 3,500,000 Traceable fixed costs
Location margin 1,550,000
$ Common fixed costs
Stores margin 1,950,000
1,400,000 $ 550,000 Although total sales met expectations for the year, management is upset that the targeted
margins were not achieved. Following is the "store by store" actual performance report.
Evaluate the detailed data and write a paragraph explaining the loss. If each store has a
positive margin, as shown in the following report, why is management upset? (Response
should be less than 75 words long) B-22.03 Actual Performance Report
All Stores
For the Year Ending December 31, 2015
Store A Store B Store C Sales
Printers $ Cartridges
Total sales 2,000,000 $ 500,000 2,500,000 $ 2,000,000 1,000,000
1,000,000 $ 2,500,000 $ 4,500,000 $ 2,000,000 $ 1,777,778 $ 2,222,222 $ 888,889 Less: Variable expenses
Printers
Cartridges 166,667 666,667 333,333 Total variable expenses $ 1,944,444 $ 2,888,889 $ 1,222,222 Contribution margin $ 555,556 $ 1,611,111 $ 777,778 Traceable fixed costs
Location margin 450,000
$ 105,556 600,000
$ 1,011,111 500,000
$ 277,778 I-23.04 Hardee's Publishing's four productive units are supported by three service departments:
Maintenance, Food services, and Information technology. Maintenance costs are allocated
to other units based on square footage, food services costs are allocated to other units
based on number of employees, and information technology costs are allocated to other
units based on number of PCs in use. Below is a listing of data for each unit:
Square
Footage Employees PCs in Use Design 2,400 4 6 Printing 6,000 8 9 1,800,000 Binding 3,000 3 2 650,000 Warehousing 9,000 3 3 180,000 Maintenance 1,000 4 1 225,000 Food services 3,000 2 1 260,000 Information technology 1,000 3 6 190,000 Direct Costs
$ 400,000 Prepare a cost allocation of his or her costs to other units using both the direct and step
allocation approach. It is agreed that the step allocations would occur in the following
order: (a) Maintenance, (b) Food services, and (c) Information technology. Name:
Date: I-23.04 Section: Direct Allocation: Maintenance
Cost incurred Informatio
n
technolog
y
###
### Food
services ### Design Printing ### ### Maintenance – – ###
– ###
– ###
– Food services – – ###
– ###
– ###
– IT – – Total cost Maintenance allocations: Food services allocations: IT allocations: Step Allocation: $ – $ – $ – $ – $ – Name:
Date: I-23.04 Section: Maintenance
Cost incurred Informatio
n
technolog
y
###
### Food
services ### Design Printing ### ### Maintenance – – – – Food services – – – – – IT – – – – – Total cost Maintenance allocations: Food services allocations: IT allocations: $ – $ – $ – $ – ###
– $ – Name:
Date: Section: Warehousing Binding
### ### ###
– – ###
– – $ – $ – I-23.04 Name:
Date: Section: Warehousing Binding
### $ ### – – – – – – – $ – I-23.04