المحاسب الإداري المعتمد الجزء 1 C. Performance Management
HelioGrid: Depot Performance and a Conditional Sale
HelioGrid Battery Services
Opens full screen, like the exam.
HelioGrid refurbishes industrial battery modules at regional depots. Depot supervisors control processing and operating costs but cannot set selling prices, negotiate customer contracts, or authorize capital investments. The commercial office controls prices and customer acquisition; it is evaluated on revenue and has no authority over depot costs or investments.
The following annual results relate to the Solace depot.
| Measure | Original budget | Actual |
|---|---|---|
| Modules sold | 80,000 | 90,000 |
| Selling price per module | $90 | $88 |
| Variable refurbishment cost | $3,600,000 | $4,140,000 |
| Fixed refurbishment cost | $1,000,000 | $1,080,000 |
| Variable selling and distribution cost | $400,000 | $450,000 |
| Fixed selling and administration cost | $500,000 | $480,000 |
Average operating assets assigned to Solace were $9,000,000. HelioGrid requires a 12% annual pretax return on those assets. The board also tracks customer renewal, promised delivery dates, technician certifications, production yield, and operating margin.
On December 20, HelioGrid received a $750,000 refundable deposit from an investor interested in buying the Solace site. The sale remains subject to financing and due diligence, control of the site has not transferred, and the deposit must be returned if the transaction fails.
Assumptions
- Use U.S. GAAP for the deposit question; there is no present right to recognize sale proceeds as income.
- All modules produced during the year were sold, and variable cost standards remain constant within the relevant range.
- Flex the budget using actual units and original budgeted selling prices and variable cost rates; retain original fixed cost budgets.
- Residual income means actual pretax operating income less 12% of average operating assets; ignore income taxes.
Calculate the absolute dollar difference between Solace's actual operating income and its flexible budget operating income for the year. Enter a positive whole-dollar amount, rounded to the nearest dollar.
A whole number.
Which TWO effects should HelioGrid record upon receiving the refundable site deposit on December 20?
Select two answers. Selected 0 / 2
Determine Solace's actual annual residual income using HelioGrid's 12% required return. Enter a whole-dollar amount rounded to the nearest dollar; use a minus sign only if residual income is negative.
A whole number. A negative amount may be written with a minus sign or in brackets.
The marks, the correct answers and the explanations appear as soon as the answers are submitted. Unanswered questions earn no marks.
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