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Author Question: Craylon Corp. is planning the 2018 operating budget. Average operating assets of $1,800,000 will be ... (Read 328 times)

Starlight

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Craylon Corp. is planning the 2018 operating budget. Average operating assets of $1,800,000 will be used during the year and unit selling prices are expected to average $100 each. Variable costs of the division are budgeted at $500,000, while fixed costs are set at $300,000. The company's required rate of return is 18%. 

Required:
a.  Compute the sales volume necessary to achieve a 20% ROI. 

b.  The division manager receives a bonus of 50% of residual income. What is his anticipated bonus for 2015, assuming he achieves the 20% ROI from part (a)?


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Marked as best answer by Starlight on Mar 6, 2021

tuate

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Starlight

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review


Kedrick2014

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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