1. If a company reports profit margin of 31.6% and investment turnover of 1.30 for one of its investment centers, the return on investment must be:

24.3%.

41.1%.

32.9%.

30.3%.

4.11%.

2. Canfield Technical School allocates administrative costs to its respective departments based on the number of students enrolled, while maintenance and utilities are allocated per square feet of the classrooms. Based on the information below, what is the total amount of administrative cost to the Accounting Department (rounded to the nearest dollar) if administrative costs for the school were $50,000, maintenance fees were $12,000, and utilities were $6,000?

Department	Students	Classrooms
Electrical	120	10,000 sq. ft.
Welding	70	12,000 sq. ft.
Accounting	50	8,000 sq. ft.
Carpentry	40	6,000 sq. ft.
Total	280	36,000 sq. ft.

$8,929.

$17,000.

$18,500.

$22,667.

$11,111.

3. Canfield Technical School allocates administrative costs to its respective departments based on the number of students enrolled, while maintenance and utilities are allocated per square feet of the classrooms. Based on the information below, what is the total amount of maintenance cost to the Carpentry Department (rounded to the nearest dollar) if administrative costs for the school were $50,000, maintenance fees were $12,000, and utilities were $6,000?

Department	Students	Classrooms
Electrical	120	10,000 sq. ft.
Welding	70	12,000 sq. ft.
Accounting	50	8,000 sq. ft.
Carpentry	40	6,000 sq. ft.
Total	280	36,000 sq. ft.

$1,714.

$12,000.

$1,850.

$2,000.

$1,111.

4. Part 7B costs the Midwest Division of Frackle Corporation $30 to make, of which $21 is variable. Midwest Division sells Part 7B to other companies for $47. The Northern Division of Frackle Corporation can use Part 7B in one of its products. The Midwest Division has enough idle capacity to produce all of the units of Part 7B that the Northern Division would require. What is the lowest transfer price at which the Midwest Division should be willing to sell Part 7B to the Northern Division?

$30

$21

$47

$17

$20

5. The following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Purchasing department expense to be allocated to Fabrication.

	Purchasing	Maintenance	Fabrication	Assembly
Operating costs	$32,000	$18,000	$96,000	$62,000
No. of purchase orders			16	4
Sq. ft. of space			3,300	2,700

$6,400.

$9,900.

$8,100.

$17,600.

$25,600.