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1. 2. 3. Violet Company has sales of $467,000, net operating income of $246,000, average invested assets of $794,000, and a hurdle rate of 10.50
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Violet Company has sales of $467,000, net operating income of $246,000, average invested assets of $794,000, and a hurdle rate of 10.50 percent. Calculate Violet's return on investment and its residual income. (Enter your ROI answer as a percentage rounded to two decimal places, i.e., 0.1234 should be entered as 12.34%). Round your Residual Income (Loss) answer to the nearest whole dollar.) Return on Investment (ROI) Residual Income (Loss) Peppertree Company has two divisions, East and West. Division East manufactures a component that Division West uses. The variable cost to produce this component is $1.55 per unit; full cost is $2.03. The component sells on the open market for $4.97. Assuming Division East has excess capacity, what is the lowest price Division East will accept for the component? What is the highest price that Division West will pay for it? (Enter your answers in 2 decimal places.) Lowest price Division East will accept Highest price Division West will pay Medlock Company has two divisions, Wheel and Chassis. The Wheel Division manufactures a wheel assembly that the Chassis Division uses. The variable cost to produce this assembly is $6.00 per unit; full cost is $7.00. The component sells on the open market for $13.00. What will the transfer price be if Medlock uses a pricing rule of variable cost plus 30 percent? (Round your answer to 2 decimal places.) Transfer priceStep by Step Solution
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