Week 6 quiz

Question :
(TCO D) Return on investment (ROI) is equal to the margin multiplied by

Student Answer:sales. turnover. average operating assets. residual income. Instructor Explanation:Chapter 12

Points Received:
5 of 5

Comments:

2.
Question :
(TCO D) For which of the following decisions are opportunity costs relevant?

(A)The decision to make or buy a needed partThe desision to keep or drop a product line
Yes
Yes
(B)
Yes
No
(C)
No
Yes
(D)
No
No

Student Answer:

Choice A

Choice B

Choice C

Choice D

Instructor Explanation:
Chapter 13

Points Received:
5 of 5

Comments:

3.
Question :
(TCO D) Last year, the House of Orange had sales of $826,650, net operating income of $81,000, and operating assets of $84,000 at the beginning of the year and $90,000 at the end of the year. What was the company's turnover, rounded to the nearest tenth?

Student Answer:9.5 10.2 9.8 9.2 Instructor Explanation:Turnover = Sales / Average operating assets
Turnover = $826,650 / [($84,000 + $90,000) / 2] = 9.5 (rounded)
1.
Question :
(TCO D) Data for December concerning Dinnocenzo Corporation's two major business segments-Fibers and Feedstocks-appear below:
Sales revenues, Fibers
$870,000
Sales revenues, Feedstocks
$820,000
Variable expenses, Fibers
$426,000
Variable expenses, Feedstocks
$344,000
Traceable fixed expenses, Fibers
$148,000
Traceable fixed expenses, Feedstocks
S156,000
Common fixed expenses totaled $314,000 and were allocated as follows: $129,000 to the Fibers business segment and $185,000 to the Feedstocks business segment.

Required:

Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts.

Student Answer:

Fibers Feedstock Total Sales Revenue 870,000 820,000 1,690,000 Less:variable ex 426,000 344,000 770,000 Contribution mar 444,000 476,000 920,000 Fixed Cost: Less traceable 148,000 156,000 304,000 Less comm fixed 129,000 185,000 314,000 Total Fixed Cost