Question
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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