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jerico jerico
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9 years ago
Craylon Corp. is planning the 2015 operating budget. Average operating assets of $1,800,000 will be used during the year and unit selling prices are expected to average $100 each. Variable costs of the division are budgeted at $500,000, while fixed costs are set at $300,000. The company's required rate of return is 18%.

Required:
a.   Compute the sales volume necessary to achieve a 20% ROI.

b.   The division manager receives a bonus of 50% of residual income. What is his anticipated bonus for 2015, assuming he achieves the 20% ROI from part (a)?
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Cost Accounting

Cost Accounting


Edition: 14th
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cyborgcyborg
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jerico Author
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#2
9 years ago
Thank you for the help. I took this course as an elective, glad it's over in three weeks. Great textbook though!
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#3
9 years ago
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