1.

Cumming Company's costs were over budget by $40,100. The company is divided into Left and Right regions. The Left Region's costs were under budget by $3,200.

Determine the amount that the Right Region's costs were over or under budget. $ _______

2.

The centralized employee Travel Department of Ohno Company has expenses of $416,500. The department has serviced a total of 11,900 travel reservations for the period. The South Division has made 3,213 reservations during the period, and the West Division has made 8,687 reservations.

How much should each division be charged for travel services? Do not round interim calculations.

South Division	$________
West Division	$________

3.

Cash Company has income from operations of $58,674, invested assets of $254,000, and sales of $838,200. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places.

a. Profit margin		_______%
b. Investment turnover		_______
c. Return on investment		_______%

4.

The Consumer Division of Galena Company has income from operations of $119,550 and assets of $467,000. The minimum acceptable return on assets is 8%.

What is the residual income for the division? $_________

5.

The materials used by the North Division of Horton Company are currently purchased from outside suppliers at $82 per unit. These same materials are produced by Hortons South Division. The South Division can produce the materials needed by the North Division at a variable cost of $44 per unit. The division is currently producing 147,000 units and has capacity of 210,000 units. The two divisions have recently negotiated a transfer price of $63 per unit for 63,000 units.

By how much will each division's income increase as a result of this transfer?

South Division	$_________
North Division	$_________

All part of one big problem.

Thank you!