1 -

Mason Corporation had $650,000 in invested assets, sales of $700,000, income from operations amounting to $99,000, and a desired minimum rate of return of 15%.

The profit margin for Mason is:

a. 7.1%

b. 20%

c. 14.1%

d. 15.2%

2 -

Which of the following would not be considered an internal centralized service department?

a. Payroll accounting department

b. Purchasing department

c. Manufacturing department

d. Information systems department

3 - The following financial information was summarized from the accounting records of Block Corporation for the current year ended December 31

	Software Division	Hardware Division	Corporate Total
Cost of goods sold	$45,492	$31,423
Direct operating expenses	$27,157	$21,101
Net sales	$99,791	$65,636
Interest expense			$2,586
General overhead			$18,193
Income tax			$4,311

What is the net income for Block Corporation?

Select the correct answer.

$15,164

$77,287

$88,512

$40,254

4 - The following financial information was summarized from the accounting records of Block Corporation for the current year ended December 31

	Software Division	Hardware Division	Corporate Total
Cost of goods sold	$46,632	$30,540
Direct operating expenses	$27,716	$20,898
Net sales	$92,541	$65,979
Interest expense			$2,208
General overhead			$19,672
Income tax			$4,255

What is the net income from operations for the Software Division?

Select the correct answer.

$64,825

$18,193

$92,541

$45,909

5 - The following financial information was summarized from the accounting records of Block Corporation for the current year ended December 31

	Software Division	Hardware Division	Corporate Total
Cost of goods sold	$46,176	$31,684
Direct operating expenses	$27,378	$20,654
Net sales	$98,305	$65,077
Interest expense			$2,038
General overhead			$18,698
Income tax			$4,014

What is the gross profit for the Software Division?

Select the correct answer.

$24,751

$98,305

$52,129

$70,927