Connect Sales S350000 ROI % Secure https//newconnect mheducation.com Chapter 9 H

Question

Connect Sales S350000 ROI % Secure https//newconnect mheducation.com Chapter 9 Homework Help 3 Juan Rubio is the manager of the production department of Rundle Corporation Rundle incurred the following costs during 2018 Production departeent supplles Adeinistrative salerles 5 5,40 92,000 578,090 Cepreciation on manufacturing equipment Corporate-level rental espense Property taxes sales salaries 65,600 Refe ences Required Prepare a list of expenditures that Mr. Rubio controls erials used 1.114,600

Explanation / Answer

List of expenditure that Mr. Rubio Controls Controllable items Amount Production department supplies 5400 Production wages 578000 Materials used 531200 Depreciation on manufacturing equipment 353600 Total 1468200 Note : Depreciation on manufacturing equipment may not be controllable in short term but it can be definitely controllable in long run by making proper decision about purchase manufacturing equipment. Requirement Supply of missing information in case of Rooney Company Sales 350000 Given ROI 30 =52500/175000% Operating assets 175000 =350000/2 Operating Income 52500 =350000*15% Turnover 2 Given Residual income 21000 =52500-175000*18% Operating profit margin 15% Given Desired rate of return 18% Given Note : In the absense of adequate information, turnover, here, is taken as asset turnover ratio. which means that for every $1 of asset $2 of sales is generated.

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