Essay
The following information is given for the Corn and Oats Divisions of Wholesome Grains Corporation.
| Corn | Oats | |
|---|---|---|
| Sales | $600,000 | $300,000 |
| Var. cost of goods sold | 200,000 | 150,000 |
| Fixed manufacturing costs | 50,000 | 40,000 |
| Variable selling | 30,000 | 5,000 |
| Fixed selling (50% allocated) | 20,000 | 4,000 |
| Fixed selling (20% allocated) | 50,000 | 30,000 |
| Assets at book value | 600,000 | 500,000 |
b. If Wholesome Grains Corporation uses ROI to evaluate division managers and uses historical cost as the investment base, compute the ROI for the Corn and Oats divisions.
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a. If Wholesome Grains Corporation uses ...
View Answer
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