any takers?

steward-acct321.xlsx

Problem B2202

JRTC is evaluating results for three separate business segments under his control. Selected financial information for each segment follows:
		Sales	Operating Income	Average Assets
	Segment A	$ 2,000,000	$ 100,000	$ 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?

&"Arial,Bold"&12 &"Myriad Web Pro,Bold"&20B-22.02

		Sales	Operating Income	Average Assets
	Segment A	$ 2,000,000	$ 100,000	$ 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
		0.0500	0.1286	0.1000
		3rd	1st	2nd
	Turnover (as used in ROI)
		Segment A	Segment B	Segment C
		0.8000	0.5833	0.7619
		1st	3rd	2nd
	ROI
		Segment A	Segment B	Segment C
		0.0400	0.0750	0.0762
		3rd	2nd	1st
I think it depends on the managers variable of focus. He/she could achieve different rankings of the many segments. Segment A ended up with the highest turnover, the poorest margin, and the second best ROI.

&"Myriad Web Pro,Bold"&12Name: Date: Section: &"Myriad Web Pro,Bold"&20B-22.02

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			$ 4,500,000
	Cartridges			4,500,000
	Total sales			$ 9,000,000
	Less: Variable expenses
	Printers			$ 4,000,000
	Cartridges			1,500,000
	Total variable expenses			$ 5,500,000
	Contribution margin			$ 3,500,000
	Traceable fixed costs			1,550,000
	Location margin			$ 1,950,000
	Common fixed costs			1,400,000
	Stores margin			$ 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)
	Actual Performance Report All Stores For the Year Ending December 31, 2015
		Store A	Store B	Store C
Sales
Printers		$ 2,000,000	$ 2,500,000	$ 1,000,000
Cartridges		500,000	2,000,000	1,000,000
Total sales		$ 2,500,000	$ 4,500,000	$ 2,000,000
Less: Variable expenses
Printers		$ 1,777,778	$ 2,222,222	$ 888,889
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		450,000	600,000	500,000
Location margin		$ 105,556	$ 1,011,111	$ 277,778

&"Arial,Bold"&12 &"Myriad Web Pro,Bold"&20B-22.03

&"Myriad Web Pro,Bold"&12Name: Date: Section: &"Myriad Web Pro,Bold"&20B-22.03

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	Direct Costs
	Design	2,400	4	6	$ 400,000
	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
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.

&"Arial,Bold"&20 &"Myriad Web Pro,Bold"&20I-23.04

&"Myriad Web Pro,Bold"&12Name: Date: Section: &"Myriad Web Pro,Bold"&20I-23.04