1. Cabell Products is a division of a major...

Cabell Products is a division of a major corporation. Last year the division had total sales of $27,220,000, net operating income of $2,874,320, and average operating assets of $7,900,000. The company's minimum required rate of return is 12%.

The division's turnover is closest to:

Multiple Choice

• 9.47

• 3.45

• 0.36

• 3.03

2.

Cabell Products is a division of a...

Cabell Products is a division of a major corporation. Last year the division had total sales of $12,270,000, net operating income of $834,360, and average operating assets of $3,190,200. The company's minimum required rate of return is 12%.

The division's return on investment (ROI) is closest to:

Multiple Choice

• 6.8%

• 26.2%

• 56.7%

• 26.0%

3.

The Consumer Products Division of...

The Consumer Products Division of Goich Corporation had average operating assets of $950,000 and net operating income of $96,600 in May. The minimum required rate of return for performance evaluation purposes is 10%.

What was the Consumer Products Division's residual income in May?

Multiple Choice

• $(1,600)

• $9,660

• $1,600

• $(9,660)

4.

Wallen Corporation is considering eliminating ...

Wallen Corporation is considering eliminating a department that has an annual contribution margin of $80,000 and $160,000 in annual fixed costs. Of the fixed costs, $90,000 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be:

Multiple Choice

• $10,000

• ($10,000)

• $80,000

• ($80,000)

5.

The following information relates ...

The following information relates to next year's projected operating results of the Children's Division of Grunge Clothing Corporation:

Contribution margin	$	200,000
Fixed expenses		500,000
Net operating loss	$	(300,000	)

If the Children's Division is eliminated, $170,000 of the above fixed expenses could be avoided. The annual financial advantage (disadvantage) for the company of eliminating this division should be:

Multiple Choice

• ($300,000)

• $30,000

• ($30,000)

• $300,000