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