A company makes three products:

ProductBudgeted sales unitsBudgeted profitActual salesActual profit

X800107008

y1000612006

Z6001235016

How can we calculate the sales mix variance.

A standard product uses 3 kg of direct material costing $4 per kg . Recently 120 units of the product were manufactured. They required 410 kg of material costing $4.50 per kg. It is decided in retrospect that the standard usage quantity of the material should have been 3.5 kg not 3 kg .How can we calculate materials operational usage variance.

At the beginning of the year a division has capital employed consisting of non current assets of 2 million dollarsand working capital of 200000 dollars.These amounts are expected to earn a profit in the year of 500000 dollars after depreciation of 400000 dollars.A new machine will be installed at the beginning of the year .It will cost 800000 dollars and will require an additional 100000 dollars in working capital.It will add 350000 dollars to divisional profits before deducting depreciation.The machine will have a four year life and no residual value ,depreciation is by the straight line method.Capital employed is taken at its mid year value when calculating ROI. How can we calculate the ROI of the division.

A company has two divisionsA and B. The division A manufactures a component which is transferred to Division B and division B uses two units of the component from Division A in every item of finished product that it makes and sells.Transfer price is $43 per unit.

S.P of finished product made in div B$154/unit

Variable production costs in division B32

Variable selling costs,chargeable to div.1

Fixed costs$160000

External sales in units7000

Investment in the division $500000

The company uses 16% as its cost of capital.

How can we calculate the residual income of Division B for the product.

An investment centre has prepared the following forecasts for the next financial year.

Operating profit before depreciation$85000

Depreciation$20000

Net current assets at beginning of year$30000

Carrying value of non current assets at beginning of year$180000

The centre manager is now considering wether to sell a machine that is inculded in these forecasts.The machine would add $2500 to divisional profit next year after depreciation of $500.It