56. Refer to Exhibit 10-2. What is the standard cost per unit for variable manufacturing overhead?

a. $16.00

b. $4.80

c. $1.44

d. $10.00

e. None of the answer choices is correct.

Exhibit 11-1

Ashville Company has two divisions Bikes and Trikes.

Ashville Company
Segmented Income Statements
For the Current Fiscal Year Ended December 31
	Bikes Division	Trikes Division
Sales	$2,400,000	$1,000,000
Cost of goods sold	1,400,000	530,000
Gross margin	1,000,000	470,000
Allocated overhead (from corporate)	270,000	170,000
Selling and administrative expenses	190,000	140,000
Operating income	540,000	160,000
Income tax expense (40%)	216,000	64,000
Net income	$ 324,000	$ 96,000

56. Refer to Exhibit 11-1. Using the segmented income statements, what is the profit margin ratio for the Trikes Division (to the nearest tenth of a percent)?

a. 47%

b. 53%

c. 9.6%

d. 16.0%

e. None of the answer choices is correct.

57. Refer to Exhibit 11-1. Assume the Trikes Division has average operating assets totaling $400,000 for the year. What is the division's return on investment?

a. 19.2%

b. 40.0%

c. 90.0%

d. 24.0%

e. None of the answer choices is correct.

58. Refer to Exhibit 11-1. Assume the Trikes Division has average operating assets totaling $400,000 for the year and the company's cost of capital rate is ten percent. What is the residual income for the Trikes division?

a. $585,000

b. $1,380,000

c. $24,000

d. $120,000

e. None of the answer choices is correct.