april 2 formulas

Question 1

ROi

Answer 1

Controllable margin / avg opearting assets

Question 2

Residual income

Answer 2

contr mar - (min roi x avg op assets)

Question 3

Residual inocme other

Answer 3

NOI - (min roi x avg opearting income)

Question 4

Expanding roi: profit margin

Answer 4

NOI / sales

Question 5

expanding roi: trunover

Answer 5

sales/ avg op assets

Question 6

cash payback technique

Answer 6

cost of capital investment / net annual cash flow

Question 7

Net present value tech

Answer 7

NPV of cash flows - cost of capital

Question 8

Profitability index

Answer 8

PV of net cash flows / initial investment

Question 9

Internal Rate of return

Answer 9

capital investment / annual cash inflows

- find the closet on chart

Question 10

annual rate of return

Answer 10

1) average investmnet + salvage / 2

2) expected NI / annual avg investment

Question 11

sales

Answer 11

avg opearting assets x turnover

Question 12

average opearting assets

Answer 12

sales / turnover

Question 13

Foh budgeted variance

Answer 13

Actual - budgeted

Question 14

Required units to meet a certain residual income

Answer 14

Avg op ass x min roi + (FC+ req residual income). /CM

Question 15

Figure out units to sell when you have total cash disbursements

Answer 15

Cash disbursements less FC + depreciation = VC total dollars

VC in total dollars / per unit VC