Flagship Logistics provides the following information: Operating income Net sales Average total assets Management's target rate of return $1,550,000 $15,000,000 $1,950,000 25% What is the company's asset turnover ratio? (Round your answer to two decimal places.) O A. 12.90 OB. 4.82 OC. 7.69 OD. 4.29 Saltwater Sail Makers manufactures sails for sailboats. The company has the capacity to produce 38,000 sails per year and is currently producing and selling 25,000 sails per year. The following information relates to current production: $175 $62 Sales price per unit Variable costs per unit: Manufacturing Selling and administrative Total fixed costs: Manufacturing Selling and administrative $20 $700.000 S250.000 Assume that a special pricing order is accepted for 5.600 sails at a sales price of $150 per unit. This special order requires both variable manufacturing and variable selling and administrative costs, as well as incremental fixed costs of $400,000. What will be the impact on operating income? O A. Operating income decreases by $19.200. OB. Operating income decreases by $380,800. OC. Operating income increases by $19.200. OD. Operating income increases by $380,800. A company has two different products that are sold in different markets. Financial data are as follows: Revenue Variable cost Fixed cost (allocated) Operating income (loss) Product Product B $18,000 $9.400 (8,000) (9.800) (1,000) 2.000) $9.000 ($2.400) Total $27,400 (17.800) (3.000) $6,600 Assume that fixed costs of $1,000 could be eliminated if Product B was dropped. Assume furthermore that dropping one product would not impact sales of the other. If Product B is dropped, what would be the impact on total operating income of the company? O A. increases by $400 OB. increases by $1,400 O C. increases by $2,000 OD. increases by $1,000 A company produces 300 microwave ovens per month, each of which includes one electrical circuit. The company currently manufactures the circuit in-house but is considering outsourcing the circuits at a contract cost of $34 each. Currently, the cost of producing circuits in-house includes variable costs of $28 per circuit and fixed costs of $8,000 per month. The controller says that they should outsource production of the circuit, if it reduces fixed cost more than $1,800 per month. Is this statement true or false? O O True False Jenna would like to purchase a new car in three years. If she saves $1,000 per year in an account that pays 8% annual interest for the next 3 years, how much will she have saved for a down payment? (Round the final answer to the nearest dollar.) Values for i=8%, n=3 Present value of an ordinary annuity of $1 Present value of $1: Future value of an ordinary annuity of $1 Future value of $1: 2.577 .772 3.246 1.260 O A. $3,772 O B. $2,577 OC. $3,246 OD. $3,577
