Exercise 10-21 Presented below is selected financial information for two divisio

Question

Exercise 10-21

Presented below is selected financial information for two divisions of Samberg Brewing.

Supply the missing information for the lettered items. (Round minimum rate of return and ROI to 1 decimal place, e.g. 10.5% and round average operating assets to 0 decimal places e.g. 58,971.)

Lager

Lite Lager

$500,300

$299,300

200,400

$1,199,100

13

19

$100,800

$203,700

Lager

Lite Lager

Contribution margin

$500,300

$299,300

Controllable margin

200,400

(c) Average operating assets $

(a)

$1,199,100

Minimum rate of return

% (b)

13

% Return on investment

19

%

% (d) Residual income

$100,800

$203,700

Explanation / Answer

Missing amounts :

Lager Lite Lager Contribution margin 500300 299300 Controllable margin 200400 359583 (c) Average operating assets 1054737 (a) 1199100 Minimum rate of return 9.4% (b) 13% Return on investment 19% 30% (d) Residual income 100800 203700

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