Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Residential Division
2,300,000
1,450,000
850,000
175,000
Industrial Division
5,750,000
3,450,000
2,300,000
480,000
675,000
100,000
575,000
1,820,000
200,000
1,620,000
volume of invoices
number of PO
pages of copy stuff
volume of data processed
by case
time for communication
The income from operations for the 2 divisions do not accurately measure performance.
The income from operations is after service charge, however the service charge is not based on activities but based on department revenue
Chapter 14
b.
in USD
Revenues
Operating expenses
Income from operations before
service dept. charges
Less service department charges:
Training
Flight scheduling
Reservations
Income from operations
Passenger Division
7,500,000
4,500,000
Cargo Division
5,000,000
2,700,000
3,000,000
2,300,000
375,000
280,000
255,000
910,000
2,090,000
125,000
70,000
195,000
2,105,000
E14-9
in USD
Sales
Cost of goods sold
Gross profit
Sales expense
Admin expense
Income from operations before
service dept. charges
Less service department charges:
Advertising expense
Transportation expense
AR collection expense
Warehouse expense
Income from operation
AS Division
18,500,000
10,700,000
TS Division
30,600,000
19,200,000
7,800,000
11,400,000
1,500,000
1,250,000
2,100,000
1,450,000
5,050,000
7,850,000
1,200,000
259,000
288,000
480,000
2,227,000
2,823,000
1,800,000
395,900
112,500
320,000
2,628,400
5,221,600
Chapter 14
TS division
1,800,000
Total
3,000,000
Transportation:
charge rate
volume of bills
Transportation expense
18.5
14,000
259,000
18.5
21,400
395,900
654,900
AR collection:
charge rate
volume of invoices
AR collection expense
9
32,000
288,000
9
12,500
112,500
400,500
Warehouse:
allocation rate
Floor space
Warehouse expense
4
120,000
480,000
4
80,000
320,000
200,000
800,000
Advertising expense
E14-10
a.
b.
E14-11
a.
b.
360,000
264,000
420,000
Chapter 14
Residual Income
180,000
154,000
35,000
E14-14
a.
b.
E14-15
Invested assets
2,500,000
6,000,000
7,500,000
14,000,000
a
b
c
d
e
f
400,000
d
g
2,380,000
16.0%
300,000
100,000
840,000
11.2%
10.0%
a
e
20%
j
g
h
i
j
k
l
12%
f
h
13%
1,500,000
12.0%
600,000
17.0%
1,820,000
560,000
Chapter 14
b
600,000
900,000
k
Residual Income
c
240,000
I
l
0.231
0.091
0.056
0.187