1.Last year, our return on investment equaled 20% ; our residual income equaled $50,000, and our minimum required rate of return (cost of capital) was 12%. What were our average operating assets (rounded to the nearest thousand ) ?

2.Ahron Company makes 8,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows :

Direct Materials : $14.90

Direct Labor : $17.50

Variable Manufacturing Overhead : $1.90

Fixed Manufacturing Overhead : $21.10

Unit Product Cost : $55.40

An outside supplier has offered to sell the company all of the units it needs. If the company accepts this offer, the facilities now being used to make this part would be used to make more units of a product in high demand. The additional contribution margin on the other product would be $161,600 per year. If the part were purchased from the outside supplier, $7.50 of the fixed manufacturing overhead cost being applied to the part would be eliminated. What is the maximum amount the company should be willing to pay an outside supplier for part if supplier commits to supplying all 8,000 units required for the year?

3.Ruland and Company makes a single product. Each unit requires $55 of direct materials. Factory overhead is applied on 150% of direct labor cost. Two third of factory overhead is fixed. The company reports the following results for February :

Number of Units Sold : 8,000

Selling Price Per Unit : $300

Manufacturing Cost Per Unit : $130

Variable Selling Expenses Per Unit : $18

Total Fixed Selling Expenses : $54,700

Variable Admin Expenses Per Unit : $32

Total Fixed Admin Expenses : $242,700

The company has no beginning or ending inventory. Calculate the operating income

4.Mehmet Company sold 60,000 units and earned $40,000 of operating income in the current month. Margin of safety in the current month was 20,000 units. The firm's marketing manager suggest that, if the company runs TV commercials at a cost of $10,000 per month, the sales volume could reach 70,000 units next month without need to lower the sales price. If the marketing manager's suggestion is taken, what will be the net operating income for next month?

5.How do you maximize contribution margin

6.Carnation's Roof Repair has provided the following information concering its budgeted costs:

Wages and Salaries Fixed Cost per month : $21,380 Cost Per Repair Hour : $15.80

Parts and Supploies Fixed Cost per month : 0 Cost Per Repair Hour : $7.50

Equipment Depreciation : Fixed Cost per month $2,740 Cost per Repair Hour : $0.60

Truck Operating Expenses : Fixed Cost Per month : $5,820 Cost per Repair Hour : $1,90

Rent : Fixed Cost Per month : $4,650 Cost Per Repair Hour : $1.90

Admin Expenses : Fixed Cost Per Month : $3,870 Cost Per Repair Hour : $0.70

Wages and salaries should be $21,380 plus $15.80 per repair hour. The company expected to work 2,500 repair hours in June but actually worked 2,400 repair hours. The company expects its sales to be $43.50 per repair hour. What is the activity variance for net operating income?

7.Moronta Inc manufactures a single product and is budgeted to produce 1,100 units in the month of March. For material, the product requires a standard quantity of 8 pounds per unit with a standard price of $17.75 per pound. Because of weaker demand, the company actually produced 1,000 units in the month with the following activity for material :

Beginning Material Inventory : 0 lbs

Actual Material Purchased : 9000 lbs at an actual cost of $112,500

Ending Materials Inventory : 800 lbs

Question : For the month of March , Moronta's Material Quantity Variance was :

8.Describe Goods and services tax

9.What is departmental accounting

10.Describe the fictitious assets