Exercise 24-14 (Algo) Return on investment LO A1 A company reports the following for the past year. Sales $ 17,650,000 Income 7,766,000 Average assets 35,300,000 The company's CFO believes that income for next year will be $10,095,800. Average assets will be the same as the past year 1. Compute return on investment for the past year. 2. If the CFO's forecast is correct, what will return on investment be for next year? Complete this question by entering your answers in the tabs below. Requiredl Requiredz If the CFO's forecast is correct, what will return on investment be for next year? as 24-18 (Algo) Determining transfer prices without excess capacity L0 C1 The Windshield division of Jaguar Company makes Windshields for use in its Assembly division. The Windshield division incurs variable costs of $256 per windshield and has capacity to make 570,000 Windshields per year. The market price is $515 per windshield. The Windshield division incurs total xed costs of $3,950,000 per year. If the Windshield division is operating at full capacity, what transfer price should be used on transfers between the Windshield and Assembly divisions? Exercise 24-19 (Algo) Determining transfer prices LO C1 The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a market price of $100 each. Each trailer incurs $44 of variable manufacturing costs. The Trailer division has capacity for 21,000 trailers per year and has xed costs of $420,000 per year. 1. Assume the Assembly division of Baxter Bicycles wants to buy 4,600 trailers per year from the Trailer division. If the Trailer division can sell all of the trailers it manufactures to outside customers (and has no excess capacity), what price should be used on transfers between divisions? 2. Assume the Trailer division currently only sells 10,400 trailers to outside customers and has excess capacity. The Assembly division wants to buy 4,600 trailers per year from the Trailer division. What is the range of acceptable prices on transfers between divisions? 2. Transfer price per trailer will be at least - but not more than _