1. Alpha Division of the Grande Company produces and sells two products. Each product's operating income and average capital resources are shown below: Product A: Operating Income $500,000; Average capital $5,000,000. Product B: Operating Income $350,000; Average capital $4,100,000. Assuming Alpha's manager has an opportunity to undertake an investment that would require a $500,000 investment and yield $40,000 in net operating income for its product B, what would the ROI be for the entire division?

2.

The production budget: ( choose one)

• Cannot be prepared until the cash budget is completed.

• Must be performed right after the direct materials, direct labor, and overhead budgets.

• Is dependent upon the sales forecast for the period.

• Is the starting point in the preparation of the master budget.