1. Compute return on investment (ROI). 2. Compute residual income. 日 તે FILE HOME INSERT * Calibri h Paste BIU Clipboard Б A1 × - Return on Investment (ROI) and Residual Income - Excel PAGE LAYOUT 11 Α' Α' FORMULAS DATA % REVIEW ? - VIEW A Alignment Number Conditional Format as Cell Cells - Font fx Б Formatting Table▾ Styles▾ Styles Editing X Sign In Adams Corporation evaluates divisional managers based on ROI. Operating A B с D E F 1 Adams Corporation evaluates divisional managers based on ROI. Operating results for the 2 company's Northern Division for last year are given below: 3 4 5 6 7 8 9 10 11 Sales Variable expenses Contribution margin Fixed expenses Net operating income Average divisional operating assets 9,500,000 12 The Northern Division has an opportunity to add a new product line at the beginning of the year as follows: $ 27,000,000 16,200,000 10,800,000 8,805,000 1,995,000 13 14 15 16 Average required investment Net operating income 17 Adams Corporation's minimum acceptable rate of return 18 $ 2,500,000 $ 400,000 15% G

1. Compute return on investment (ROI). 2. Compute residual income. 日 તે FILE HOME INSERT * Calibri h Paste BIU Clipboard Б A1 × - Return on Investment (ROI) and Residual Income - Excel PAGE LAYOUT 11 Α' Α' FORMULAS DATA % REVIEW ? - VIEW A Alignment Number Conditional Format as Cell Cells - Font fx Б Formatting Table▾ Styles▾ Styles Editing X Sign In Adams Corporation evaluates divisional managers based on ROI. Operating A B с D E F 1 Adams Corporation evaluates divisional managers based on ROI. Operating results for the 2 company's Northern Division for last year are given below: 3 4 5 6 7 8 9 10 11 Sales Variable expenses Contribution margin Fixed expenses Net operating income Average divisional operating assets 9,500,000 12 The Northern Division has an opportunity to add a new product line at the beginning of the year as follows: $ 27,000,000 16,200,000 10,800,000 8,805,000 1,995,000 13 14 15 16 Average required investment Net operating income 17 Adams Corporation's minimum acceptable rate of return 18 $ 2,500,000 $ 400,000 15% G

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 9EA: Classify each of the following performance measures into the balanced scorecard perspective to which...

See similar textbooks

Similar questions

Classify the performance measures below into the most likely balanced scorecard perspective itrelates to. Label your answers using C (customer), P (internal process), I (innovation and growth), or F(financial). Customer satisfaction index
Classify the performance measures below into the most likely balanced scorecard perspective itrelates to. Label your answers using C (customer), P (internal process), I (innovation and growth), or F(financial). Customer wait time
Exercise 10-12 Evaluating New Investments Using Return on Investment (ROI) and Residual Income (LO10-1, LO10-2] Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A $ 6,300,000 $ 1,260,000 340,200 Division B $ 10,300,000 $ 5,150,000 968,200 18.80% Division C $ 9,400,000 $ 1,880,000 24 Sales Average operating assets Net operating income Minimum required rate of return 2$ 249,100 20.00% 17.00% Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 20% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or…
Classify the performance measures below into the most likely balanced scorecard perspective itrelates to. Label your answers using C (customer), P (internal process), I (innovation and growth), or F(financial). Number of new products introduced
EVENT PLANNING.XLS In the following data table taken from the Event planning spreadsheet, the highest Operating Income value should be in the: Data table Patron per Tableà 6 Patron per Tableà Patron per Tableà 7 8 a. Upper left corner b. Upper right corner c. Lower left corner d. Lower right corner $1,200 Operating income ($) Operating income ($) Operating income ($) Fee $1,100 Operating income ($) Operating income Operating income ($) $1,000 Operating income ($) Operating income ($) Operating income ($)
Classify the performance measures below into the most likely balanced scorecard perspective towhich it relates: customer (C), internal processes (P), innovation and growth (I), or financial (F). Customer complaints
Classify the performance measures below into the most likely balanced scorecard perspective towhich it relates: customer (C), internal processes (P), innovation and growth (I), or financial (F). Sales returns
Jalancu Juviai u The following are a number of measures associated with the Balanced Scorecard. Required: 1. Classify each performance measure as belonging to one of the following perspectives: financial, customer, internal business process, or learning and growth. a. Number of new customers b. Percentage of customer complaints resolved with one contact C. Unit product cost d. Cost per distribution channel e. Suggestions per employee f. Warranty repair costs Consumer satisfaction (from surveys) Cycle time for solving a customer problem Strategic job coverage ratio j. On-time delivery percentage k. Percentage of revenues from new products 2. Select an additional measure that would be appropriate for each of the four perspectives. Contribution margin by product ▾ Number of complaints Number of accidents per month Hours of continuing education provided per month g. h. i. Financial Customer Customer Internal business process Financial Financial Learning and growth Learning and growth…
Instructions: Designate the best answer for each of the following questions. 1.Which of the following is a responsibility center that incurs expenses, generates revenues, and is responsible for generating a return on assets? a. Cost center b. Revenue center c. Profit center d. Investment center 2.Which one of the following is the most useful measure for evaluating a manager's performance in controlling revenues and costs in a profit center? a. Contribution margin b. Contribution net income c. Contribution gross profit d. Controllable margin 3.Hanover Corporation desires to earn target net income of $42,000. The selling price per unit is $18, unit variable cost is $5.60, and total fixed costs are $123,912. How many units must the company sell to earn its target net income? a. 13,380 b. 9,993 c. 3,387 d. 9,217 4.Remark…
A-1. Evaluate the performance of the two divisions assuming BMI users return on investment (ROI). A-2. Which division had the better performance?
Classify the performance measures below into the most likely balanced scorecard perspective towhich it relates: customer (C), internal processes (P), innovation and growth (I), or financial (F). Accident-free days
Do solve asap True and False questions - Indicate True or False 4. Cost centers are used for profit control. 5. Return on investment is used to compare divisions.