1.

Weymouth Company made a $230,000 investment in new machinery. Assuming the company's margin is 7%, what income will be earned if the investment generates $495,000 in additional sales?

$16,100.

$34,650.

$265,000.

None of these.

2.

Picard Company reported the following information for 2014:

Sales	$890,000
Average Operating Assets	$390,000
Desired ROI	14%
Net Income	$ 59,000

The company's residual income for 2014 was:

$54,600.

$-11,000.

$15,400.

$4,400.

3.

The Electronics Division of Apex Company reports the following results for 2014:

Revenues	$418,000
Operating expenses	$376,000
Operating income	$ 42,000
Operating assets	$520,000

Apex Company has set a target return on investment (ROI) of 14% for the Electronics Division.

The Electronic Division's return on investment is:

8.08%.

11.17%.

14.00%.

10.05%.

4.

The Electronics Division of Apex Company reports the following results for 2014:

Revenues	$472,000
Operating expenses	$424,000
Operating income	$ 48,000
Operating assets	$580,000

Apex Company has set a target return on investment (ROI) of 11% for the Electronics Division.

The Electronic Division's margin is:

12.89%.

10.17%.

11.32%.

8.28%.

5.

Which of the following would appear on a selling and administrative expense budget, but would not appear on a schedule of cash payments for selling and administrative expenses?

Cost of goods sold

Depreciation expense

Salary expense

Sales expense