Assume a company reported the following results: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $400,000 260,000 140,000 104,000 $ 36,000 $300,000 The margin is closest to: Multiple Choice 12.7%. 133.3% 35.0%. Assume a company has only one service department and one operating department. The service department's budgeted and actual variable costs for the period were $80,000 and $84700, respectively. The budgeted and actual units of service provided to the operating department were 40,000 units and 41,000 units, respectively. How much of the service department's variable costs should not be charged to the operating department? Multiple Choice $4,700 $0 $2.700 $3,200 Assume a company has two divisions, Division A and Division B. Division A has provided the following information regarding the one product that it manufactures and sells on the outside market: Selling price per unit (on the outside market) Variable cost per unit Fixed costs per unit (based on capacity) Capacity in units $ 60 $ 44 $ 8 20,000 Division B could use Division A's product as a component part in the manufacture of 4,000 units of its own newly-designed product. Division B has received a quote of $58 from an outside supplier for a component part that is comparable to the one that Division A makes Also assume that the company's divisional managers are evaluated based on their division's profits and that Division A is currently selling 15,000 units on the outside market. What is the range of acceptable transfer prices between the two divisions? Multiple Choice $523 Transfer prices 558 $44 s Transfer prices 558 Assume a company reported the following results: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $400,000 260,000 140,000 104,000 $ 36,000 $300,000 The margin is closest to: Multiple Choice 12.7% 133.3% 35.0%. Assume a company has only one service department and one operating department. The service department's budgeted and actual fixed costs for the period were $100.000 and $110,000, respectively. The peak perlod units of service required by the operating department was 50,000 units. The actual units of service used by the operating department was 40,000 units. How much of the service department's fixed costs should be charged to the operating department? Multiple Choice $88,000 $110,000 $105.000 $100,000 Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $400,000 260,000 140,000 40,000 $100,000 $575,000 If the company's minimum required rate of return on average operating assets is 16%, its residual income would be Multiple Choice $8.000 $9,000 $11,000 $10.000