1)Panther Company had the following historical accounting data per unit:

Direct materials	$60
Direct labor	30
Variable overhead	15
Fixed overhead	24
Variable selling expenses	45
Fixed selling expenses	9

The units are normally transferred internally from Division A to Division B. The units also may be sold externally for $210 per unit. The minimum profit level accepted by the company is a markup of 30 percent. There were no beginning or ending inventories. If variable manufacturing costs without a fixed fee are used as the transfer price, Division A's transfer price would be

a. $60.

b. $105.

c. $90.

d. $144.

2) The following information pertains to the three divisions of Merrymount Company:

	Division X	Division Y	Division Z
Sales	?	?	1,250,000
Net operating income	$ 36,000	$25,000	$ 75,000
Average operating assets	300,000	?	?
Return on investment	?	20%	15%
Margin	0.10	0.05	?
Turnover	1.5	?	?
Target ROI	15%	12%	10%

What are the average operating assets for Division Y?

a. $25,000

b. $208,333

c. $5,000

d. $125,000

3) The Engine Division provides diesel engines for the Motor Home Division of a company. The standard unit costs for Engine Division are as follows:

Direct materials	$ 600
Direct labor	1,200
Variable overhead	300
Fixed overhead	150
Market price per unit	2,730

What is the best transfer price to avoid transfer price problems?

a. $2,100

b. $600

c. $1,800

d. $2,730

4)

The following information pertains to the three divisions of Merrymount Company:

	Division X	Division Y	Division Z
Sales	?	?	1,250,000
Net operating income	$ 36,000	$25,000	$ 75,000
Average operating assets	300,000	?	?
Return on investment	?	20%	15%
Margin	0.10	0.05	?
Turnover	1.5	?	?
Target ROI	15%	12%	10%

What is the turnover for Division Z?

a. 1.500

b. 0.150

c. 6.670

d. 2.500