Cheese Products Inc. produces gourmet cheese for resale at local grocery stores. The company expected to use 3.0 pounds of direct materials to produce one unit (batch) of product at a cost of $8 per pound. Actual results are in for last year, which indicates 45,000 units of cheese were sold. The company purchased 160,000 pounds of materials at $7.50 per pound, and used 145,000 pounds in production. What is Cheese Products Inc.'s direct materials price variance? O ($72,500) favorable O ($80,000) favorable O $80,000 unfavorable O $72,500 unfavorableAshville Company has two divisions - Bikes and Trikes. Ashville Company Segmented Income Statements For the Current Fiscal Year Ended December 31 Bikes Division Sales $2,400,000 Cost of goods sold _1,, Gross margin 1,000,000 Allocated overhead (from corporate) 270,000 Selling and administrative expenses 190,@ Operating income 540,000 Income tax expense (40%) 216,M Net income $ih Using the segmented income statements, what is the prot margin ratio for the Bikes Division (to the nearest tenth of a percent)? 0 13.5% 0 22.5% o 58.3% 0 417% Trikes Division $1,000,000 530,0 0 470,000 170,000 140,000 160,000 |o P o o o 5&0 O Ashville Company has two divisions Bikes and Trikes. Ashville Company Segmented Income Statements For the Current Fiscal Year Ended December 31 Bikes Division Sales $2,400,000 Cost of goods sold _1,, Gross margin 1,000,000 Allocated overhead (from corporate) 270,000 Selling and administrative expenses 190, Operating income 540,000 Income tax expense (40%) A,M Net income $h Assume the Trikes Division has average operating assets totaling $400,000 for the year. What is the division's return on investment? 0 400% 0 24.0% o 19.2% 0 90.0% Trikes Division $1,000,000 140,@ 160,000 6 J: ,00 O $,0 O