Cabell Products is a division of a major corporation. Last year the division had total sales of $11,650,000, net operating income of $1,141,700, and average operating assets of $3,495,000. The company's minimum required rate of return is 11%. The division's margin is closest to: Multiple Choice O 32.7% (0) 9.8% 30.0% O U O 89.1% The SP Corporation makes 41,000 motors to be used in the production of its sewing machines. The average cost per motor at this level of activity is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $ 10.00 $ 9.00 $ 3.70 $ 4.65 An outside supplier recently began producing a comparable motor that could be used in the sewing machine. The price offered to SP Corporation for this motor is $25.45. If SP Corporation decides not to make the motors, there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. Direct labor is a variable cost in this company. The annual financial advantage (disadvantage) for the company as a result of making the motors rather than buying them from the outside supplier would be: Multiple Choice $190,650 $264,450 O ($77,900) 112.750 O The Millard Division's operating data for the past two years are provided below: Return on investment Net operating income Turnover Margin Sales Year 1 12% ? ? ? $ 3,350,000 Year 2 36% $ 660,000 3 ? ? Millard Division's margin in Year 2 was 150% of the margin in Year 1. The net operating income for Year 1 was: Multiple Choice $804,000 $268,000 $440,000 U O $402,000