1)

Jimbob Co. has four operating divisions with the following information for the most recent fiscal year. Jimbob Co. The minimum rate of return set by company management is 15%. Required: a. What is the return on investment for each division? b. If Division B was able to reduce its operating expenses by $70,000, what would be its new return on investment? c. What is the residual income for each division? d. If the divisions were each offered an opportunity to add an investment that would result in a 17\% ROI, which division woul less likely to accept the new opportunity? A sales budget is given below for one of the products manufactured by the OMI CO: The inventory of finished goods at the end of each month must equal 30% of the next month's sales. However, on December 31 the finished goods inventory totaled only 4,500 units Each unit of product requires four pounds of specialized material. Since the production of this specialized material by OMis suppliers is sometimes irregular, the company has a policy of maintaining an ending inventory at the end of each month equal to 25% of the next month's production needs. This requirement had been met on January 1 of the current year. Prepare a budget showing the quantity of material to be purchased each month for January, February, and March and in total for the quarter. The following overhead data are for a department in a large company. Required: Prepare a report that would be useful in assessing how well costs were controlled in this department