Calculate each division’s RI. Interpret your results.

Calculate each division’s EVA. Interpret your results.

Complete the performance evaluation report for this subunit (round to two dec- imal places).

Q43. Based on the data presented and your knowledge of the company, what type of responsibility center is this subunit?

Which items should be investigated if part of management’s decision criteria is to investigate all variances equal to or exceeding $5,000 * and * exceeding 10% (both criteria must be met)?

Q45. Should only unfavorable variances be investigated? Explain.

Is it possible that the variances are due to a higher-than-expected sales vol- ume? Explain.

Q47. Will management place equal weight on each of the $5,000 variances? Explain.

Which balanced scorecard perspective is being addressed through this perfor- mance report? In your opinion, is this performance report a lead or a lag indica- tor? Explain.

Q49. List one key performance indicator for the three other balanced scorecard per- spectives. Make sure to indicate which perspective is being addressed by the indi- cators you list. Are they lead or lag indicators? Explain.

Q50. Calculate the company’s profit margin. Interpret your results.

Calculate the company’s asset turnover. Interpret your results.

Q52. Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results.

Calculate the company’s RI. Interpret your results.

Q54. Calculate the company’s EVA. Interpret your results.

Calculate each division’s profit margin. Interpret your results.

Calculate each division’s asset turnover. Interpret your results.

Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results.

Q58. Calculate each division’s RI. Interpret your results and offer a recommendation for any division with negative RI.

Calculate each division’s EVA. Interpret your results.

Describe some of the factors that management considers when setting its mini- mum target rate of return.

Q60. Complete the performance evaluation report for this subunit (round to two dec- imal places).

Based on the data presented and your knowledge of the company, what type of responsibility center is this subunit?

Q62. Which items should be investigated if part of management’s decision criteria is to investigate all variances equal to or exceeding $10,000 * and * exceeding 10% (both criteria must be met)?

Should only unfavorable variances be investigated? Explain.

Q64. Is it possible that the variances are due to a higher-than-expected sales volume? Explain.

Will management place equal weight on each of the $10,000 variances? Explain.

Which balanced scorecard perspective is being addressed through this perfor- mance report? In your opinion, is this performance report a lead or a lag indica- tor? Explain.

Q67. List one key performance indicator for the three other balanced scorecard per- spectives. Make sure to indicate which perspective is being addressed by the indi- cators you list. Are they lead or lag indicators? Explain.

Calculate the company’s profit margin. Interpret your results.

Calculate the company’s asset turnover. Interpret your results.

Q70. Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results.

Calculate the company’s RI. Interpret your results.

Calculate the company’s EVA. Interpret your results.

Calculate each division’s profit margin. Interpret your results.

Q74. Calculate each division’s asset turnover. Interpret your results.

Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results.

Calculate each division’s RI. Interpret your results and offer a recommendation for any division with negative RI.

Q77. Calculate each division’s EVA. Interpret your results.

Describe some of the factors that management considers when setting its mini- mum target rate of return.

Calculate Lawlor’s profit margin for 2013.

Calculate Draper’s profit margin, asset turnover, and EVA for 2013.

Q81. What are the two product segments? Gather data about each segment’s net sales, operating income, and identifiable assets.

Calculate ROI for each segment.

Which segment has the highest ROI? Explain why.

If you were on the top management team and could allocate extra funds to only one divi- sion, which division would you choose? Why?

Q85. Irwin has identified a supplier, Cheap Paper, that can provide paper products at a 10% cost reduction. The paper quality is not the same as that of the current paper used in produc- tion. If Irwin uses the supplier, he will certainly achieve his personal bonus goals; however, other company goals may be in jeopardy. Identify the key performance issues at risk and recommend a plan of action for Irwin.

Q86. If an asset has either too long a useful life or too high an estimated salvage value, what happens, from an accounting perspective, when that asset is worn out and has to be dis- posed of?

Q87. Do the rules of GAAP (generally accepted accounting principles) mandate specific lives for different types of assets? What is the role of the outside auditor in evaluating the reason- ableness of depreciation lives and salvage values?

Q88. Develop a list of key performance indicators for the product. ** **