1. An organizaton's required rate of return is 13% The ROl of Divisions A and B respectively is 10% and 15%% Each Division is considering a project that will have a 12% rate of return If ROl is used to evaluate divisions which of the following statements is true?

Select one

1. Division A will accept and Division B will reject the project
2. Both divisions will accept the project
3. Both divisions will reject the project
4. Division A will reject and Division B will accept, the project

2. Division A has a capacity of 2,000 units Its sales and cost data are Selling price per unit $100, Variable manufacturing costs per unit $25. variable administrative costs per unit $5. Total fixed manufacturing overhead $20,000, Total fixed administrative costs $5.000 Division A is currently selling1,900 units to outside customers, and Division B wants to purchase300 units from A. If the transaction takes place. the variable administrative costs per unit on the units to B will be $2/unit, not $5/unit 1f Division B is currently buying from an outside supplier at $98 per unit, what will be the effect on overall company profits if internal sales take place at the optimum transfer price?

Select one

a $7,000 Increase

b 7,300 increase.

C There is no effect

D 300 Increase

3. Division X produces and sells a product to external and internal customers. Per-unit information about its operations include. Selling price per unit to external customers $250; Variable manufacturing costs per unit $115, Fixed manufacturing overhead casts per unit $70. If X is operating at capacity and has unlimited external customer demand, what should be the minimum transfer price?

Select one.

a None of the amounts given

b $115

C $250

D $185

e $245

4. Suppose an office building is owned for which long term leases have been signed, the tenants pay utilities and operating costs, and straight-line depreciation is taken. The rate of return on the book value of this investment can be expected to

Select one

a Vary randomly over time

b. Decrease overtime

C. Increase over time

D. Remain constant over time

please show the reasons and calculation