6. Refer to the above data. The direct materials quantity variance is: A) $5,300 favorable B$5,500 unfavorable C) $5,300 unfavorable D) $5.500 favorable The following information regarding Greenwich Company is available: $1,512,000 $882,000 $252,000 $3,780,000 Sales.. Cost of sales ......................... Operating expenses................ Operating Income................. Average invested capital......... ROI........ Return on sales...... Capital (Investment) turnover ..... Compute the answers for items A-D. 7. A- Operating Income 318.000 10% 8. B - Return on Investment 378,000 1,512,000 2 5 9. C- Return on Sales 10 10. D-Capital (Investment) Turnover_ Port Pharmacy is considering the purchase of a copying machine, which it will make available to customers at a per-copy charge. The copying machine has an initial cost of $8,500, an estimated useful life of five years, and an estimated salvage value of $2,500. The estimated annual revenue and expenses relating to operation of the machine are as follows: $9,000 Revenue... $5,500 Expenses other than depreciation....... All revenue will be received in cash; expenses other than depreciation will be paid in cash. Depreciation will be computed by the straight-line method. 9000 Compute for this proposal the expected: - 5500 11. Annual increase in Port's net income: $ 500 3300 - 8000 12. Annual net cash flow: $ 3300 13. Payback period: 2.13 years 500 14. Return on average investment: 15. Net present value (round to the nearest dollar) of the proposed investment, discounted at an annual rate of 15% (Tables show that the present value of $1 to be received in five periods, discounted at 15%, is 0.497 and that the present value of a five-year annuity of $1, discounted at 15%, is 3.352): $