22) Holo Company reported the following financial numbers for one of its divisions for the year; average total assets of $6,400,000; sales of $7,175,000; cost of goods sold of $3,825,000; and operating expenses of $1,387,000. Compute the division's return on investment:

27.4%.

19.3%

30.7%.

23.8%.

28.1%.

24) Responsibility accounting performance reports:

Become more detailed at higher levels of management.

Are usually summarized at higher levels of management.

Are equally detailed at all levels of management.

Are useful in any format.

Are irrelevant at the highest level of management.

26) Minor Electric has received a special one-time order for 1,200 light fixtures (units) at $22 per unit. Minor currently produces and sells 6,000 units at $23.00 each. This level represents 75% of its capacity. Production costs for these units are $30.00 per unit, which includes $20.00 variable cost and $10.00 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $900 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. If Minor wishes to earn $1,900 on the special order, the size of the order would need to be:

5,600 units.

1,340 units.

1,400 units.

2,800 units.

55 units.

27) Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $10.30; direct labor, $24.30, and overhead, $16.30. An outside supplier has offered to sell the product to Wheeler for $46.88. If Wheeler buys from the supplier, it will still incur 40% of its overhead cost. Compute the net incremental cost or savings of buying.

$5.15 savings per unit.

$5.15 cost per unit.

$2.50 cost per unit.

$5.76 cost per unit.

$2.50 savings per unit.

31) The following data concerns a proposed equipment purchase:

Cost	$140,200
Salvage value	$3,800
Estimated useful life	4 years
Annual net cash flows	$45,900
Depreciation method	Straight-line

The annual average investment amount used to calculate the accounting rate of return is:

$70,100

$68,200

$35,050

$72,000

$47,150

33) The following present value factors are provided for use in this problem.

Periods	Present Value of $1 at 8%	Present Value of an Annuity of $1 at 8%
1	0.9259	0.9259
2	0.8573	1.7833
3	0.7938	2.5771
4	0.7350	3.3121

Xavier Co. wants to purchase a machine for $37,100 with a four year life and a $1,100 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $12,100 in each of the four years. What is the machine's net present value (round to the nearest whole dollar)?

$3,785.

$2,976.

$40,885.

$(3,785).

$(2,976).

34) Poe Company is considering the purchase of new equipment costing $89,500. The projected net cash flows are $44,500 for the first two years and $39,500 for years three and four. The revenue is to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of an annuity of 1 and present value of an annuity for different periods is presented below. Compute the net present value of the machine.

Periods	Present Value of 1 at 10%	Present Value of an Annuity of 1 at 10%
1	0.9091	0.9091
2	0.8264	1.7355
3	0.7513	2.4869
4	0.6830	3.1699

$(36,345).

$(22,101).

$36,345.

$22,101.

$44,389.