1. Valentine Clothing operates two product lines: Pants and Shirts. The following information is available for your analysis of the Pants line: Total Variable expenses = $30,000, contribution margin ratio = 40%, traceable and controllable fixed expenses = $6,000 and segment margin = $5,000. Compute traceable NOT controllable fixed expenses.

2. Remember, Return on Investment (ROI) and Return on Assets (ROA) are equivalent. If ROA = 25%, turnover = 1.25 and income = $6,000, compute Total Sales.

3. Valentine has a practical capacity of 20,000 units. Practical capacity is used as the denominator volume for calculating per-unit costs. At the denominator level of volume, the company's variable expenses = $17.00 per unit and per unit fixed expenses = $11.70. Compute the average per-unit cost at a volume of 18,000 units.

4. Valentine's monthly practical capacity = 20,000 candles. Currently, current customers purchase 15,000 candles each month at a price of $40.00 per unit. The Louisiana Food Bank would like to purchase 4,000 candles at a 25% discount. For the current sales to exiting customers, total variable expenses = $255,000 and total fixed expenses = $144,000. With each candle sold, the Food Bank would like to insert a "pledge" card asking customers who buy a candle to donate directly to the Food Bank. The card and manually placing the card in each candle's box will increase variable expenses by $3.00 per unit. If Valentine accepts the special order, how much can they expect Net Income to increase?

5. Valentine's monthly practical capacity = 20,000 candles. Currently, current customers purchase 18,000 candles each month at a price of $40.00 per unit. The Louisiana Food Bank would like to purchase 8,000 candles at a 25% discount. For the current sales to exiting customers, total variable expenses = $306,000 and total fixed expenses = $144,000. With each candle sold, the Food Bank would like to insert a "pledge" card asking customers who buy a candle to donate directly to the Food Bank. The card and manually placing the card in each candle's box will increase variable expenses by $3.00 per unit. If Valentine accepts the special order, how much can they expect Net Income to increase (decrease)?