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Assume All About Shoes Corporation has a division manager that is considering investing in the Hiking Shoes Project which had the following results last year
Assume All About Shoes Corporation has a division manager that is considering investing in the Hiking Shoes Project which had the following results last year (in thousands) Management's target rate of return is 20%. The division manager's current ROI before the investment is 30%. Sales $5,000,000 Operating income 250,000 Total assets 1,000,000 Current liabilities 750,000 What is the the project's Return on Investment (ROI) and would the corporation's division manager accept or reject the project if the manager was evaluated using ROI ? O A. 5% and reject O B. 25% and accept O C. 25% and reject OD. 100% and accept Everyone Deserves to Smile mobile dentist office budgeted for 4,350 patient visits a year. Everyone Deserves to Smile actually saw 4,450 patients during the year and they have provided the following data: Variable Portion per Fixed Portion for Budget patient visit for Budget Actual Results Revenue $66.00 $404,800 Personnel Expenses $100,000 $96.000 Medical Supplies $9.00 $38,200 Occupancy Expenses $8.000 $1.25 $18,000 Admin Expenses $18,000 $0.50 $19,750 Based on the given information, what is the volume variance for personnel expenses? O A. $4,000 Unfavorable OB. $4,000 Favorable OC. SO OD. Cannot be determined
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