3.

Financial data for Windsor, Inc. for last year appear below:

The company paid dividends of $138,000 last year. The "Investment in Pine Company" on the statement of financial position represents an investment in the stock of another company.

Required:
a.	Compute the company's margin, turnover, and return on investment for last year. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "%" sign in your response.)

Margin	%
Turnover
Return on investment	%

b.	The Board of Directors of Windsor, Inc. has set a minimum required return of 38%. What was the company's residual income last year? (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.)

Residual income

$

5. The North Division of Barter Company makes and sells a single product, which is a part used in manufacturing trucks. The annual production capacity is 39,000 units and the variable cost of each unit is $48. Presently the North Division sells 34,000 units per year to outside customers at $60 per unit. The South Division of Barter Company would like to buy 20,000 units a year from North to use in its production. There would be no savings in variable costs from transferring the units internally rather than selling them externally. The lowest acceptable transfer price from the standpoint of the North Division should be closest to:

a. $48.00

b. $21.00

c. $60.00

d. $57.00

10.

Division 1 of Ace Company makes and sells wheels that can either be sold to outside customers or transferred to Division 2. The following data are available from last month:

Division 1:

Selling price to outside customers	$41 per unit
Variable cost when sold to outside customers	$29 per unit
Capacity	19,000 units

Division 2:

Number of wheels needed per month	6,000 units
Price per wheel paid to an outside supplier	$39 per unit

If Division 1 sells the wheels to Division 2, Division 1 can avoid $5 per unit in sales commissions.

Suppose that Division 1 sells 13,900 units each month to outside customers. According to the formula in the text, what is the lowest acceptable transfer price from the viewpoint of the selling division?

a. $26.30 per unit

b. $39.00 per unit

c. $34.00 per unit

d. $25.80 per unit