Question
46) Evergreen Corporation has two major divisions: Agricultural Products and Industrial Products. It provides the following information for the year. Agriculture Division Industrial Division Net
46) Evergreen Corporation has two major divisions: Agricultural Products and Industrial Products. It provides the following information for the year.
Agriculture Division | Industrial Division | |
Net sales | $150,000 | $1,750,000 |
Operating income | $17,600 | $218,400 |
Average assets | $350,000 | $5,580,000 |
Calculate the profit margin ratio for the Industrial Division of the company. (Round your answer to two decimal places.)
A. 5.03%
B. 11.73%
C. 3.91%
D. 12.48%
47) Marsh, Inc. provides the following information:
Actual Sales | Static Budget | Flexible Budget | Sales Volume Variance | |
Sales Revenue | $560,000 | $535,000 | $450,000 | ? |
Calculate the sales volume variance.
A. $25,000 F
B. $110,000 F
C. $85,000 U
D. $25,000 U
48) If 26,000 units are 60% complete with respect to direct materials, then the equivalent units of production for direct materials are ________. The weightedaverage method is used.
A. 15,600 units
B. 10,400 units
C. 26,000 units
D. 36,400 units
49) Home Express Moving Company is considering purchasing new equipment that costs $718,000. Its management estimates that the equipment will generate cash inflows as follows:
Year 1 | $200,000 |
2 | 200,000 |
3 | 270,000 |
4 | 270,000 |
5 | 162,000 |
Present value of $1:
6% | 7% | 8% | 9% | 10% | |
1 | 0.943 | 0.935 | 0.926 | 0.917 | 0.909 |
2 | 0.890 | 0.873 | 0.857 | 0.842 | 0.826 |
3 | 0.840 | 0.816 | 0.794 | 0.772 | 0.751 |
4 | 0.792 | 0.763 | 0.735 | 0.708 | 0.683 |
5 | 0.747 | 0.713 | 0.681 | 0.650 | 0.621 |
The company's annual required rate of return is 9%. Using the factors in the table, calculate the present value of the cash flows. (Round all calculations to the nearest whole dollar.)
A. $856,700
B. $841,599
C. $904,000
D. $902,000
50 ) A company's production department was experiencing a high defect rate on the assembly line, which was slowing down production and causing a higher waste of valuable direct materials. The production manager decided to purchase a higher grade of materials that would be more reliable. This would produce a(n) ________.
A. unfavorable direct labor cost variance
B. favorable direct materials cost variance
C. favorable direct materials efficiency variance
D. unfavorable direct labor efficiency variance
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