This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: University Hospital provided the following segment margin income statements for two of its ... (Read 20 times)

gboileau

  • Full Member
  • ***
  • Posts: 158
on: Feb 5, 2023
University Hospital provided the following segment margin income statements for two of its divisions: Diagnostic and Outpatient. Both divisions are structured as investment centers.


​​DiagnosticOutpatientTotal
Revenue$500,000$400,000$900,000
Variable expenses​​​
  Product220,000 140,000360,000
  Selling and administrative  150,000   80,000 230,000
Contribution margin130,000 180,000310,000
Less traceable fixed costs   82,000   93,000  175,000
Segment margin$  48,000$  87,000135,000
Common fixed costs​​  130,000
Net operating income​​$    5,000

The average assets for the Diagnostic and Outpatient divisions total $400,000 and $600,000, respectively. The required minimum rate of return for both divisions is 10%.

Required:

a.Calculate the current residual income for each division.
b.Why is residual income a better measure of performance for managers of investment
centers than the overall profit compared to the flexible budget?
Managerial Accounting ¦ Davis ¦ 4th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by gboileau on Feb 5, 2023

jbsuccess1

  • Full Member
  • ***
  • Posts: 158
Reply #1 on: Feb 5, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 32% of students answer this correctly


gboileau

  • Member
  • Posts: 158
Reply 2 on: Feb 5, 2023
YES! Correct, THANKS for helping me on my review

xoxo123

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

The Abecedarian study was designed to help very low-income African American children prepare for ... The Abecedarian study was designed to help very low-income African American children prepare for ...
Sources of income for U.S. population aged 65 and over. Sources of income for U.S. population aged 65 and over.
States that require licensing or certification. Graphic provided by Associated Bodywork & ... States that require licensing or certification. Graphic provided by Associated Bodywork & ...
Saving Rates by Income Quintile, 2003 Saving Rates by Income Quintile, 2003
How an Increase in Income Inequality Affects the Desired Tax Rate How an Increase in Income Inequality Affects the Desired Tax Rate
The obese (ob) mouse mutant, shown on the left (a normal mouse is on the right), has provided many c The obese (ob) mouse mutant, shown on the left (a normal mouse is on the right), has provided many c
Video: Introduction to Heart Attacks

For a complete list of videos, visit our video library