12-41 and 13-42

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rznaohearl19

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ACC650

Description

Complete Problems 12-41 and 13-42 in the textbook.

Both of these case assignments should be prepared in a Word document with embedded Excelspreadsheets for relevant calculations and supporting schedules. The response for Problem 12-41 should be a minimum of 250 words.

Please note, you must show your work in Excel, which includes providing the formulas in the cells, not just the summary value. You may not earn full points if you do not show your work in detail.

Save your assignment as Lastname_FirstnameACC650_T6.docx.

APA style is not required, but solid academic writing is expected.

You are required to submit this assignment to Lopeswrite.

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ating_creating_value_in_a_dynamic_business environment_11e.pdf (SECURED) - Adobe Acrobat Reader DC w Help cob_managerial_ac... X + 100% Q Q JPG 570 (571 of 849) The following partial organization chart is an extension of Exhibit 12–1 for Aloha Hotels and Resorts. Problem 12-41 Designating Responsibility Centers; Hotel (LO 12-2) Waikiki Sands Hotel Grounds and Malntenance Department Housekeeping and Custodial Department Recreational Services Department Hospitality Department Food and Beverage Department Front Desk Bell Staff Guest Services Each of the hotel's five main departments is managed by a director (e.g., director of hospitality). The Front Desk subunit, which is supervised by the front desk manager, handles the hotel's reserva- tions, room assignments, guest payments, and key control. The Bell Staff, managed by the bell captain, is responsible for greeting guests, front door service, assisting guests with their luggage, and deliver- ing room-service orders. The Guest Services subunit, supervised by the manager of Guest Services, is responsible for assisting guests with local transportation arrangements, advising guests on tourist attrac- tions, and such conveniences as valet and floral services. Required: As an outside consultant, write a memo to the hotel's general manager suggesting a responsibility-center designation for each of the subunits shown in the organization chart above. Justify your choices. о Q 616 (617 of 849) m e 103% je Problem 13-42 ROI and Residual Income; Investment Evaluation (LO 13-2, 13-3, 13-4, 13-8) Megatronics Corporation, a massive retailer of electronic products, is organized in four separate divi- sions. The four divisional managers are evaluated at year-end, and bonuses are awarded based on ROI. Last year, the company as a whole produced a 13 percent return on its investment. During the past week, management of the company's Northeast Division was approached about the possibility of buying a competitor that had decided to redirect its retail activities. (If the competitor is acquired, it will be acquired at its book value.) The data that follow relate to recent performance of the Northeast Division and the competitor: 3. Income: $150,000 5. Current residual income of the Northeast Division: $148,000 Northeast Division Competitor Sales $8,400,000 Variable costs 70% of sales Fixed costs Invested capital $5,200,000 65% of sales $1,670,000 $625,000 $2,150,000 $1,850,000 Chapter 13 Investment Centers and Transfer Pricing 587 Management has determined that in order to upgrade the competitor to Megatronics' standards, an additional $375,000 of invested capital would be needed. Required: As a group, complete the following requirements. 1. Compute the current ROI of the Northeast Division and the division's ROI if the competitor is acquired. IKIS Type here to search D W do or view петр ne Tools cob_managerial ac... * BQ 617 (618 of 849) 103% 园 Northeast Division Competitor Sales $8,400,000 $5,200,000 Variable costs 70% of sales 65% of sales EINNI Fixed costs ..... Invested capital $2,150,000 $1,850,000 $1,670,000 $625,000 Chapter 13 Investment Centers and Transfer Pricing 5 Management has determined that in order to upgrade the competitor to Megatronics' standards, an additional $375,000 of invested capital would be needed. Required: As a group, complete the following requirements. 1. Compute the current ROI of the Northeast Division and the division's ROI if the competitor is acquired. 2. What is the likely reaction of divisional management toward the acquisition? Why? 3. What is the likely reaction of Megatronics' corporate management toward the acquisition? Why? 4. Would the division be better off if it didn't upgrade the competitor to Megatronics' standards? Show computations to support your answer. 5. Assume that Megatronics uses residual income to evaluate performance and desires a 12 percent minimum return on invested capital. Compute the current residual income of the Northeast Division and the division's residual income if the competitor is acquired. Will divisional management be likely to change its attitude toward the acquisition? Why?
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Explanation & Answer

Here is the memo

Surname 1
Name
Instructor
Course
Date

12-41 and 13-42

To

: The General Manager

From :
Subject: Suggestion for Responsibility Centers for the Front Desk, Bell Staff, and Guest Service
Subunits
Date

:

In reference to the workload in the company departments, this memo provides a suggestion for
the designation of a responsibility-center for each of the various subunits in the organization
char, which include the...


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