____ 47. Division W of MJW Company has sales of $140,000, cost of goods sold of $83,000, operating expenses of $43,000, and invested assets of $100,000. What is the profit margin for Division W?

a.	14%
b.	2.8%
c.	10%
d.	5.47%

____ 48. Bulls Company is considering the acquisition of a machine that costs $375,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual cash flow of $150,000, and annual operating income of $87,500. What is the estimated cash payback period for the machine?

a.	3 years
b.	4.3 years
c.	2.5 years
d.	5 years

____ 49. The following data relate to direct labor costs for the current period:

Standard costs	6,000 hours at $12.00
Actual costs	7,500 hours at $11.60

What is the direct labor rate variance?

a.	$15,000 unfavorable
b.	$3,000 favorable
c.	$17,400 unfavorable
d.	$2,400 favorable

____ 50. Quincy Corp. can further process Product J to produce Product D. Product J is currently selling for $21 per pound and costs $15.75 per pound to produce. Product D would sell for $35 per pound and would require an additional cost of $8.75 per pound to produce. What is the differential cost of producing Product D?

a.	$7 per pound
b.	$8.75 per pound
c.	$15 per pound
d.	$5.25 per pound

____ 53. The expected average rate of return for a proposed investment of $4,800,000 in a fixed asset, using straight line depreciation, with a useful life of 20 years, no residual value, and an expected total net income of $12,000,000 is:

a.	25%
b.	18%
c.	40%
d.	12.5%

____ 54. Madison Corporation is analyzing a capital expenditure that will involve a cash outlay of $146,040. Estimated cash flows are expected to be $30,000 annually for seven years. The present value factors for an annuity of $1 for 7 years at interest of 6%, 8%, 10%, and 12% are 5.582, 5.206, 4.868, and 4.564, respectively. The internal rate of return for this investment is:

a.	10%
b.	6%
c.	12%
d.	8%

____ 55. The four steps necessary to determine the cost of goods completed and the ending inventory valuation in a process cost system are:

1.	allocate costs to transferred and partially completed units
2.	determine the units to be assigned costs
3.	determine the cost per equivalent unit
4.	calculate equivalent units of production

The correct ordering of the steps is:

a.	2, 3, 1, 4
b.	4, 2, 3, 1
c.	2, 3, 4, 1
d.	2, 4, 3, 1

____ 59. What cost concept used in applying the cost-plus approach to product pricing, includes total selling and administrative expenses to which the desired profit is added to in the numerator, when calculating markup %?

a.	Variable cost concept
b.	Total cost concept
c.	Product cost concept
d.	Opportunity cost concept

____ 60. If fixed costs are $1,400,000, the unit selling price is $220, and the unit variable costs are $120, what is the amount of sales required to realize an operating income of $200,000?

a.	14,000 units
b.	12,000 units
c.	16,000 units
d.	13,333 units