Question
1. The following data relate to Logan Electric and its Lightbulb Division. Lightbulb Division sales $8,500,000 Lightbulb Division operating income $510,000 Lightbulb Division total assets
1. The following data relate to Logan Electric and its Lightbulb Division.
Lightbulb Division sales | $8,500,000 |
Lightbulb Division operating income | $510,000 |
Lightbulb Division total assets | $2,500,000 |
Lightbulb Division current liabilities | $560,000 |
Corporate target rate of return | 16% |
Corporate weighted average cost of capital | 13% |
Corporate effective tax rate | 45% |
What is the Lightbulb Division's capital turnover?
A. 3.4 | |
B. 4.5 | |
C. 16.7 | |
D. 4.9 |
2. A favorable direct labor efficiency variance might indicate that
A. higher skilled workers were used that performed the task faster than expected. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
B. higher skilled workers were used that performed the task slower than expected. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
C. lower skilled workers were paid a higher wage than expected. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
D. lower skilled workers were paid a lower wage than expected. 3. Mockingbird Company expects to sell 5,100 bird perches in January and 9,000 in February for $3 each. What will be the total sales revenue reflected in the sales budget for those months?
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