1.

Spring 20 Company has prepared the following sales budget:

Month	Budgeted Sales
Sep	$300,000
Oct	$310,000
Nov	330,000
Dec	350,000

Cost of goods sold is budgeted at 60% of sales and the inventory at the end of August was $36,000. Desired inventory levels at the end of each month are 15% of the next month's cost of goods sold. What is the desired beginning inventory on December 1? You must show your work to get credit.

2.

Spring 20 Company has two divisions: Consumer Products and Business Products. Based on the following information, calculate:

1. the Profit Margin for the Consumer Products Division

2. the Profit Margin for the Business Products Division

You must show your work to get credit. Round to two decimal points.

	Consumer Division	Business Division
Sales revenue	$140,000	$1,240,000
Operating income	$20,000	$300,000
Average assets	$300,000	$5,540,000

3.

Spring 20 Company has several divisions that are investment centers. Data for the two divisions are shown here:

	Carrier Division	Bike Division
Operating income	$140,000	$60,000
Total assets at Jan 1	$670,000	$230,000
Total assets at Dec 31	$710,000	$220,000

1. What is the Return on Investment or ROI for the Carrier Division? Round to 2 decimals and you must show your work to get credit.

1. What is the Return on Investment or ROI for the Bike Division? Round to 2 decimals and you must show your work to get credit.