1. Agustin Industries is a division of a major corporation. Data concerning the most recent year appears below: Sales $ 18,270,000 Net operating income $ 1,077,930 Average operating assets $ 4,440,000 ________________________________________ The division's turnover is closest to: Multiple Choice 16.95 4.11 0.24 4.12

2. Wetherald Products, Inc., has a Pump Division that manufactures and sells a number of products, including a standard pump that could be used by another division in the company, the Pool Products Division, in one of its products. Data concerning that pump appear below: Capacity in units 59,500 Selling price to outside customers $ 100 Variable cost per unit $ 62 Fixed cost per unit (based on capacity) $ 20 ________________________________________ The Pool Products Division is currently purchasing 4,900 of these pumps per year from an overseas supplier at a cost of $83 per pump. Assume that the Pump Division is selling all of the pumps it can produce to outside customers. What should be the minimum acceptable transfer price for the pumps from the standpoint of the Pump Division? Multiple Choice $82 per unit $83 per unit $100 per unit $62 per unit

3. Division C makes a part that it sells to customers outside of the company. Data concerning this part appear below: Selling price to outside customers $ 60 Variable cost per unit $ 38 Total fixed costs $ 490,000 Capacity in units 25,600 ________________________________________ Division D of the same company would like to use the part manufactured by Division C in one of its products. Division D currently purchases a similar part made by an outside company for $59 per unit and would substitute the part made by Division C. Division D requires 5,340 units of the part each period. Division C has ample excess capacity to handle all of Division Ds needs without any increase in fixed costs and without cutting into outside sales. What is the lowest acceptable transfer price from the standpoint of the selling division? Multiple Choice $60 $59 $56 $38