1.

1. The Mold Division of SPKY makes and sells only one product. Annual data on the Mold Division's single product follow:

   Unit selling price	$50
   Unit variable cost	$30
   Total fixed costs	$200,000
   Average operating assets	$750,000
   Minimum required rate of return	12%

   Suppose the manager of the Mold Division desires an annual residual income of $45,000. In order to achieve this, the Mold Division should sell how many units per year?

   a		14,500.
   b		16,750.
   c		18,250.
   d		19,500.

2. Understanding that excelling in innovation, operations, and post-sales service helps to satisfy customers is part of which balanced scorecard perspective?

   a		Customer perspective
   b		Financial perspective
   c		Employee perspective
   d		Internal business perspective

3. When evaluating a revenue centre, the performance reports generally focus on the:

   a		revenue and expenses.
   b		flexible budget variance.
   c		sales volume variance.
   d		flexible budget variance and sales volume variance.