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3 years ago

Forchen, Inc., provided the following information for two of its divisions for last year:

Business

1 answer:

Ede4ka [16]3 years ago

3 0

Answer:

Forchen, Inc.

a. Residual income for the Small Appliances Division:

$2,218,880

b. Residual income for the Cleaning Products Division:

$788,800

Explanation:

a) Data and Calculations:

Small Appliances Cleaning Products

Division Division

Sales $34,670,000 $31,320,000

Operating income 2,773,600 1,252,800

Operating assets, January 1 6,394,000 5,600,000

Operating assets, December 31 7,474,000 6,000,000

Average operating assets 6,934,000 5,800,000

Rate of return (8%) 554,720 464,000

Residual income 2,218,880 788,800

b) The rate of return of 8% is computed on the average operating assets. The residual income is the difference between the operating income and the minimum rate of return.

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3 years ago

The daily water consumption for an Ohio community is normally distributed with a mean consumption of 850,125 gallons and a stand

malfutka [58]

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3 years ago

High-Low Method

svlad2 [7]

Answer:

Variable cost per unit= $50

Fixed costs= $900,000

Explanation:

Giving the following information:

Total Costs Units Produced

January $1,900,000 20,000 units

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March 2,400,000 30,000

<u>To calculate the unitary variable cost and the fixed cost under the high-low method, we need to use the following formulas:</u>

<u></u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (2,400,000 - 1,900,000) / (30,000 - 20,000)

Variable cost per unit= $50

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Fixed costs= 2,400,000 - (50*30,000)

Fixed costs= $900,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 1,900,000 - (50*20,000)

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3 years ago

If dividends omitted on preferred shares must be paid before common stockholders are entitled to any dividends, then the preferr

juin [17]

If dividends omitted on preferred shares must be paid before common stockholders are entitled to any dividends, then the preferred stock must be cumulative.

A dividend is when a company distributes profits to its shareholders. When a company makes a profit or surplus, it may pay a portion of the profit to its shareholders as dividends. Amounts not distributed are reinvested in the company (called retained earnings).

Not only this year's profit but also the accumulated profit of the previous year can be distributed. Companies are generally prohibited from paying dividends out of their share capital. Distributions to shareholders can be paid in cash (usually by depositing into a bank account).

Alternatively, if the company has a dividend reinvestment scheme, the amount can be paid by issuing additional shares or buying back shares. In some cases, asset distributions may occur.

Learn more about Dividents here :brainly.com/question/25845157

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1 year ago

Home inspector Maura was walking Thad through a property inspection. The frame house, on a slab foundation, had mulch piled up a

VladimirAG [237]

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3 years ago