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1. Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $30 per pound and costs $26 per

1.

Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $30 per pound and costs $26 per pound to produce. Product C would sell for $61 per pound and would require an additional cost of $23 per pound to produce. What is the differential cost of producing Product C?

a.$26 per pound

b.$61 per pound

c.$30 per pound

d.$23 per pound 2.

Mason Corporation had $1,170,000 in invested assets, sales of $1,239,000, income from operations amounting to $237,000, and a desired minimum return of 13%.

The residual income for Mason Corporation is

a.$0

b.$118,860

c.($5,200)

d.$84,900

3.

Mason Corporation had $1,188,000 in invested assets, sales of $1,272,000, income from operations amounting to $213,000, and a desired minimum return of 14%.

Round your answer to two decimal places.

The investment turnover for Mason Corporation is

a.0.86

b.1.61

c.1.28

d.1.07

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