assignment
asf1533
2021-10-28BUS444Chapter11QandAblank-.pptxChapter 11 Q and A
b. Kajsa should not have been reprimanded. If the budget is adjusted to reflect the actual level of activity (a flexible budget), variable costs were $800 below budget.
E11.24
EXERCISE 11.31
a. Controllable margin = ($3,000,000 – $1,980,000 – $600,000) = $420,000
ROI = $420,000 ÷ $5,000,000 = 8.4%
b. 1. Contribution margin is $3,000,000 – $1,980,000 = $1,020,000
Contribution margin percentage is 34%, or ($1,020,000 ÷ $3,000,000)
Increase in controllable margin = $320,000 × 34% = $108,800
ROI = ($420,000 + $108,800) ÷ $5,000,000 = 10.6%
2. ($420,000 + $150,000) ÷ $5,000,000 = 11.4%
3. $420,000 ÷ ($5,000,000 – $200,0001) = 8.8%
1($5,000,000 × 4%)
P.11.37a
P.11.37a
