Data for the following subsidiaries of Olive Manufacturing which are operated as investment centers are as follows: $$\begin{array} { l c c }
& \text { Fleming Company } & \text { Oak Company } \
\text { Sales } & \$ 3,000,000 & \$ 2,000,000 \
\text { Controllable margin } & ( 1 ) & ( 3 ) \
\text { Average operating assets } & ( 2 ) & 4,000,000 \
\text { Contribution margin } & 1,200,000 & 800,000 \
\text { Controllable fixed costs } & 500,000 & 200,000 \
\text { Return on Investment } & 10 \% & ( 4 )
\end{array}$$ Instructions
Compute the missing amounts using the ROI formula.

Question

Data for the following subsidiaries of Olive Manufacturing which are operated as investment centers are as follows: $$\begin{array} { l c c } 
& \text { Fleming Company } & \text { Oak Company } \
\text { Sales } & \$ 3,000,000 & \$ 2,000,000 \
\text { Controllable margin } & ( 1 ) & ( 3 ) \
\text { Average operating assets } & ( 2 ) & 4,000,000 \
\text { Contribution margin } & 1,200,000 & 800,000 \
\text { Controllable fixed costs } & 500,000 & 200,000 \
\text { Return on Investment } & 10 \% & ( 4 )
\end{array}$$ Instructions
Compute the missing amounts using the ROI formula.

Quizplus · Accepted Answer

The Answer of Data for the following subsidiaries of Olive Manufacturing which are operated as investment centers are as follows: $$\begin{array} { l c c } 
& \text { Fleming Company } & \text { Oak Company } \
\text { Sales } & \$ 3,000,000 & \$ 2,000,000 \
\text { Controllable margin } & ( 1 ) & ( 3 ) \
\text { Average operating assets } & ( 2 ) & 4,000,000 \
\text { Contribution margin } & 1,200,000 & 800,000 \
\text { Controllable fixed costs } & 500,000 & 200,000 \
\text { Return on Investment } & 10 \% & ( 4 )
\end{array}$$ Instructions
Compute the missing amounts using the ROI formula.

Data for the Following Subsidiaries of Olive Manufacturing Which Are