Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following results for the past year:

Sales $1,400,000
Net operating income $70,000
Average operating assets $350,000

Required:
a. Compute the Springfield club's return on investment (ROI), margin and turnover value.
b. Assume that the manager of the club is able to increase sales by $70,000 and that, as a result, net operating income increases by $18,200. Further, assume that this is possible without any increase in operating assets. What would be the club's return on investment (ROI), margin and turnover value?
c. Assume that the manager of the club is able to reduce expenses by $14,000 without any change in sales or operating assets. What would be the club's return on investment (ROI), margin and turnover value?

Answer:

1. 20%

2.25.2%

3.24%

Explanation:

1. Calculation to determine the ROI

Using this formula

ROI= Net income/Average operating assets

Let plug in the formula

ROI= $70,000 / $350,000*100

ROI= 20%

2) ROI = ($70,000 +$18,200)/$350000"100

ROI=$88,200/$350,000*100

ROI=25.2%

3) ROI = ($70,000 +$14,000)/350000*100

ROI=$84,000/$350,000*100

ROI=24%

Barton Industries expects next year's annual dividend, D1, to be $2.00 and it expects dividends to grow at a constant rate g = 4.2%. The firm's current common stock price, P0, is $20.00. If it needs to issue new common stock, the firm will encounter a 4.5% flotation cost, F. What is the flotation cost adjustment that must be added to its cost of retained earnings? Do not round intermediate calculations. Round your answer to two decimal places.

The economy is in long-run equilibrium. Technological change shifts the long-run aggregate supply curve $120 billion to the right. At the same time, government purchases increase by $30 billion. If the MPC equals 0.8 and the crowding-out effects are $30 billion, we would expect that in the long run. (C)

a. real GDP would be higher but the price level would be lower
b. both real GDP and the price level would be lower
c. real GDP would be higher but the price level would be the same
d. both real GDP and the price level would be higher

The Chilton Corporation specializes in manufacturing one type of desk lamp. Chilton allocates variable manufacturing overhead costs on the basis of machine hours. Chilton budgeted 0.3 machine hours per lamp and allocates overhead at a rate of $1.90 per machine hour. Last year Chilton manufactured 19,000 lamps, used 7,600 machine hours and incurred actual overhead costs of $12,920. What was​ Chilton's variable manufacturing overhead efficiency variance last​ year?
A. ​$9,660 favorable
B. ​$4,140 unfavorable
C. ​$4,140 favorable
D. ​$9,660 unfavorable

The projected benefit obligation was $280 million at the beginning of the year and $300 million at the end of the year. Service cost for the year was $18 million. At the end of the year, there were no pension-related other comprehensive income accounts. The actuary’s discount rate was 5%. What was the amount of the retiree benefits paid by the trustee?

Direct Materials Variances The following data relate to the direct materials cost for the production of 20,000 automobile tires: Actual: 80,000 lbs. at $2.65 $212,000 Standard: 86,000 lbs. at $2.50 $215,000 a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter favorable variances as negative numbers. Enter unfavorable variances as positive numbers. Price variance $fill in the blank 1 Quantity variance fill in the blank 3 Total direct materials cost variance $fill in the blank 5 b. The direct materials price variance should normally be reported to the . The direct materials quantity variance due to a malfunction of equipment that had not been properly operated should be reported to the . The total materials cost variance should be reported to the .

A change in supply is illustrated by a movement along an existing supply curve


true or false

Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama Sales $ 3,000,000 $ 9,000,000 Net operating income $ 210,000 $ 720,000 Average operating assets $ 1,000,000 $ 4,000,000 Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 15%. Compute the residual income for each division. 3. Is Yokohama’s greater amount of residual income an indication that it is better managed?

The budget director for Kanosh Cleaning Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of operations; accordingly, there are no beginning account balances.

October November December
Budgeted S&A Expenses
Equipment lease expense $5,800 $5,800 $5,800
Salary expense 6,700 7,200 7,600
Cleaning supplies 2,880 2,720 3,040
Insurance expense 1,800 1,800 1,800
Depreciation on computer 2,400 2,400 2,400
Rent 2,100 2,100 2,100
Miscellaneous expenses 710 710 710
Total operating expenses $22,390 $22,730 $23,450
Schedule of Cash Payments for S&A Expenses
Equipment lease expense
Prior month's salary expense 100%
Cleaning supplies
Insurance premium
Depreciation on computer
Rent
Miscellaneous expenses
Total disbursements for operating expenses $22,290 $18,030 $18,850


Required:
a. Complete the schedule of cash payments for S&A expenses by filling in the missing amounts.
b. Determine the amount of salaries payable the company will report on its pro forma balance sheet at the end of the fourth quarter.
c. Determine the amount of prepaid insurance the company will report on its pro forma balance sheet at the end of the fourth quarter.

In the Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2020 were as follows. Budget Actual Indirect materials $15,700 $14,800 Indirect labor 21,300 22,100 Utilities 11,100 11,900 Supervision 5,100 5,100 All costs are controllable by the department manager. Prepare a responsibility report for April for the cost center.

Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of all hamburgers sold): 23 percent, 22 percent, 18 percent, 12 percent, 11 percent, 8 percent, and 6 percent. Instructions: Enter your answers as a whole number. a. What is the four-firm concentration ratio of the hamburger industry in this town? percent b. What is the Herfindahl index for the hamburger industry in this town? c. If the top three sellers combine to form a single firm, what would happen to the four-firm concentration ratio and to the Herfindahl index? Four-firm concentration ratio = percent Herfindahl index =

Use the data below to construct the advance/decline line for the stock market. Volume figures are in thousands of shares. (Do not round intermediate calculations. Round your answers to the nearest whole number. Input all amounts as positive values.) Stocks Advancing Advancing Volume Stocks Declining Declining Volume Monday 1,634 825,503 1,402 684,997 Tuesday 1,876 928,360 1,171 440,665 Wednesday 1,640 623,369 1,410 719,592 Thursday 2,495 1,101,332 537 173,003 Friday 1,532 508,790 1,459 498,585
Adv./Dec. Cumulative
Monday
Tuesday
Wednesday
Thursday
Friday

When a fast-moving consumer goods (FMCG) company faced bankruptcy, the company decided to encourage its employees to contribute their ideas toward organizational development and growth. The organization also asked its human resource team to assess the employees' levels of commitment toward organizational effectiveness. To improve the FMCG company's organizational performance, it is evident that the company most likely used _____. Group of answer choices

Parker Company pays each member of its sales staff a salary as well as a commission on
each unit sold. For the coming year, Parker plans to increase all salaries by 5% and to keep
unchanged the commission paid on each unit sold. Because of increased demand, Parker
expects the volume of sales to increase by 10%. How will the total cost of sales salaries and
commissions change for the coming year?
A. Increase by 5% or less.
B. Increase by more than 5% but less than 10%.

Prepare general journal entries to record the following transactions.Omit explanations.

Jan.
3 Paid office rent, $1,600.
4 Bought a truck costing $50,000, making a down of $7,000
6 Paid wages, $3,000.
7 Received $1 6,000 cash from customers for services performed.
10 Paid $4,100 owed on last month's bills.
12 Billed credit customers, $5,300
17 Received $1 ,800 from credit customers.
19 Taylor Gordon, the owner, withdrew $1,700.
23 Paid $700 on amount owed for truck
29 Received bill for utilities expense, $255.

Time, energy, and money are examples of:
-unlimited resources.

-limited resources.

-flexible resources

-fixed resources

Machinery purchased for $73,800 by Blossom Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,920 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2021, it is determined that the total estimated life should be 10 years with a salvage value of $5,535 at the end of that time. Assume straight-line depreciation.

Required:
Prepare the entry to correct the prior years' depreciation, if necessary.

Match the items with the appropriate definitions. Items which are not definitions will be used.
Barter Double coincidence of wants Money
Answer Bank
paper bills and coins
a situation where two individuals each want some good or service that the other can provide
trading one good for another without the use of money
whatever serves society in three functions: medium of exchange, store of value, and unit of account
an event that occurs in conjunction with an unrelated event
a situation in which money is used to facilitate economic transactions

If the variable overhead efficiency variance is $500 unfavorable and the variable overhead spending variance is $100 favorable, the journal entry will include a: _________

a. Debit to variable overhead efficiency variance
b. Credit to variable overhead efficiency variance
c. Debit to variable overhead spending variance
d. Credit to variable overhead spending variance

Concord uses the periodic inventory system. For the current month, the beginning inventory consisted of 7400 units that cost $10.00 each. During the month, the company made two purchases: 3000 units at $11.00 each and 11900 units at $11.50 each. Concord also sold 12800 units during the month. Using the FIFO method, what is the ending inventory

Viola has to relocate for her job. She finds a townhome with an option to rent or buy. The conditions of each are shown below. Rent: Move-in costs of $2,380 and.monthly payment of $845. Buy: Move-in costs of $5,260 and monthly payment of $785. Viola moves frequently due to her job, but she thinks that she will stay in the area for 4 years. Therefore, she decided to buy. Cho0se the best evaluation of Viola's deci a. Since the costs would be the same over the 4 year period, she will have made a good decision if the property value does not decrease. b. She made a fairly good decision. Buying the townhome will be cheaper over the 4 year period as long as she doesn't have major repairs to make. C. She made a poor decision if the property value does not increase. Renting the townhome would be cheaper over the 4 year period. d. There is not enough information given to determine which option is best.​

Advertising department expenses of $26,700 and purchasing department expenses of $46,700 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows.
Department Sales Purchase Orders
Books $180,400 1,290
Magazines 123,000 690
Newspapers 106,600 1,020
Total $410,000 3,000
Complete a table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments.

Henry is a new employee who used to work for your most daunting competitor. When you

are designing an ad campaign, you interview Henry to help you draft an accurate

company.

coercive
reward
referent
information
none of the above.

using a scale: Three boys Isaac ,Alex and Ken are standing in different parts of a field .Isaac is 100 metres north of Alex and Ken is 120 metres east of Alex .Find the compass bearing of Ken from Isaac​

On January 1, 2021, Rapid Airlines issued $240 million of its 8% bonds for $221 million. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. Rapid Airlines records interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2021, the fair value of the bonds was $229 million as determined by their market value in the over-the-counter market. Rapid determined that $1,000,000 of the increase in fair value was due to a decline in general interest rates.

Required:
Prepare the journal entries to record interest on June 30, 2021 (the first interest payment), on December 31, 2021 (the second interest payment) and to adjust the bonds to their fair value for presentation in the December 31, 2021, balance sheet.

he Hudson Corporation has 8,100 obsolete units of a product that are carried in inventory at a manufacturing cost of $162,000. If the units are remachined for $40,900, they could be sold for $73,000. Alternatively, the units could be sold for scrap for $28,100. The alternative that is more desirable and the total relevant costs for that alternative are:

Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 150 100 % Variable expenses 60 40 % Contribution margin $ 90 60 % The company is currently selling 7,000 units per month. Fixed expenses are $214,000 per month. The marketing manager believes that a $7,500 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? rev: 03_09_2018_

Transactions for Buyer and Seller Ellis Co. sold merchandise to Chang Co. on account, $147,800, terms FOB shipping point, 2/10, n/30. The cost of the merchandise sold is $88,680. Ellis Co. paid freight of $2,500. Assume that all discounts are taken. Journalize Ellis Co.'s entries for the (a) sale, (b) purchase, and (c) payment of amount due. If an amount box does not require an entry, leave it blank.

Hardware is adding a new product line that will require an investment of . Managers estimate that this investment will have a​ 10-year life and generate net cash inflows of the first​ year, the second​ year, and each year thereafter for eight years. The investment has no residual value. Compute the payback period.

King Electronics, a retailer of video equipment, sold two VCR's to Larson, a psychologist, for her personal use in her home. The sale to Larson was made on credit. King retained a security interest in the VCR's sold but did not file a financing statement. Mills, A creditor of Larson, subsequently filed an attachment on the VCR's. Mills has asserted that his lien on the two VCR's is superior to King's security interest because King failed to perfect his security interest. Decide.

in damselflies a basal quadrangular cell in the wing venation is called​