Gibson Publications established the following standard price and costs for a hardcover picture book that the company produces. Gibson planned to make and sell 29,000 copies of the book. Required: a. - d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 28,000 and 30,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 30,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e. zero variance).) Problem 15-21A (Algo) Determining and interpreting flexible budget variances LO 15-5 Jordan Publications established the following standard price and costs for a hardcover picture book that the company produces: Assume that Jordan actually produced and soid 37,000 books. The actual sales price and costs incurred follow: Required a. \& b. Determine the flexible budget variances and also Indicate whether each variance is favorable (F) or unfavorable (U), (Select "None" if there is no effect (i.e., zero variance).) Required a. \& b. Determine the flexible budget variances and also indicate whether each variance is fovorable (F) or unfavorabie (U). (Select "None" if there is no effect (i.e., zero variance).) Solomon Corporation's balance sheet indicates that the company has $640.000 invested in operating assets. During the yeat, Solomon earned operating income of $81,920 on $1,280,000 of sales. Required a. Compute Solomon's profit margin for the year. b. Compute Solomon's turnover for the year. c. Compute Solomon's return on investment for the yoac, d. Recompute Solomon's ROI under each of the following independent assumptions: (7) Sales increase frort $1,280,000 to $1,536,000, thereby resulting in an increase in operating income from $81,920 to $92.160. (2) Sales remain constant, but Solomon reduces expenses, resulting in an increase in operating income from $81,920 to $84,480. (3) Solomon is able to reduce its invested capital from $640,000 to $512,000 without affecting operating income. Complete this question by entering your answers in the tabs below. Compute Solomon's profit margin, tumover and return on investment for the year, (Round "Profit margin" and "Recum on investment" to 1 decimal place (i.e., 0.234 should be entered as 23.4).) a. Compute Solomon's profit margin for the year. b. Compute Solomon's turnover for the year. c. Compute Solomon's return on investment for the yoar. d. Recompute Solomon's ROI under each of the following independent assumptions: (1) Sales increase from $1,280,000 to $1,536,000, thereby resulting in an increase in operating income from $81,920 to $92.160. (2) Sales remain constant, but Solomon reduces expenses, resulting in an increase in operating income from $81,920 to $84,480. (3) Solomon is able to reduce its invested capital from $640,000 to $512,000 without affecting operating income. Complete this question by entering your answers in the tabs below. Recompute Solomon's Rot under each of the following independent assumptions: (Do not round intermediate calculations. Round your answers to 2 decimal places. (1.6,2345 should be entered as 23.45).) (1) Sales increase from $1,280,000 to $1,536,000, thereby resuiting in an increase in operating income from $81,920 to $92,160. (2) Saies remain constant, but Solomon reduces expenses, resuiting in an increase in operating income from s81,920 to 584,480 . (3) Solomon is able to reduce its invested capital from $640,000 to $512,000 without affecting operating income
