Two segments (Mountain Bike and Road Bike) showed the following data for the most recent year: Mountain Bike Road Bike Contribution to indirect expenses 840,000 504,000
#1. Two segments (Mountain Bike and Road Bike) showed the following data for the most recent
year:
| Mountain Bike | Road Bike | |
| Contribution to indirect expenses | 840,000 | 504,000 |
| Assets with directly used by and identified with the segment | 2,520,000 | 2,184,000 |
| Sales | 3,360,000 | 6,720,000 |
a. Calculate return on investment for each segment in the most direct manner. b. Calculate return on investment using the margin and turnover components.
#2. Given the following data, prepare a schedule that shows contribution margin, contribution to indirect expenses, and net income of the Sharks Division of Hockey, Inc.:
Direct fixed expenses $ 425,000
Indirect fixed expenses 325,500
Sales 2,400,000
Variable expenses 1,800,000
What would be the effect on the company income if the segment was eliminated?
#3. Three segments (A, B, and C) of Trump Enterprises have net sales of $500,000, $300,000, and $200,000, respectively. A decision is made to allocate the pool of $50,000 of administrative overhead expenses of the home office to the segments, using net sales as the basis for allocation.
a. How much of the $50,000 should be allocated to each segment?
b. If Segment C is eliminated, how much of the $50,000 will be allocated to A and B?
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"
