Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help Save & Exit Salvey Inc. reported the following results from last year's operations 9 Sales Variable expenses Contribution margin Fixed expenses Net operating income

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Help Save & Exit Salvey Inc. reported the following results from last year's operations 9 Sales Variable expenses Contribution margin Fixed expenses Net operating income $7,200,000 5,550,000 1,650,000 1,146,eee $ 504,000 The company's average operating assets were $3,000,000, At the beginning of this year, the company has a $300,000 investment opportunity that involves sales of $480,000, fixed expenses of $100,800, and a contribution margin ratio of 30% of sales. If the company pursues the investment opportunity and otherwise performs the same as last year, the combined ROI for the entire company will be closest to: 9 Multiple Choice O 16.6% O 1.3% O 18.2% o 15.3% Cranston Corporation makes four products in a single facility. Data concerning these products appear below. 16 Selling price per unit Variable manufacturing cost per unit Variable selling cost per unit Milling machine minutes per unit Monthly demand in units Products A B D $42.30 $50.00 $37.60 $33.50 $20.80 $30.70 $21.99 $19.90 $ 2.70 $ 2.19 $ 1.00 $ 2.40 3.30 4.10 2.60 1.30 1, eee 4,000 3,000 3,000 The milling machines are potentially the constraint in the production facility. A total of 28,200 minutes are available per month on these machines How many minutes of milling machine time would be required to satisfy demand for all four products? 16 Multiple Choice 11,000 28,200 23,500 O 31,400 17 Boney Corporation processes sugar beets that it purchases from farmers Sugar beets are processed in batches. A batch of sugar beets costs $53 to buy from farmers and $18 to crush in the company's plant. Two intermediate products, beet fiber and beetjuice, emerge from the crushing process. The beet fiber can be sold as is for $25 or processed further for $18 to make the end product industrial fiber that is sold for $39. The beet juice can be sold as is for $32 or processed further for $28 to make the end product refined sugar that is sold for $79 What is the financial advantage (disadvantage) for the company from processing the intermediate product beetjuice into refined sugar rather than selling it as is? 17 Multiple Choice $1 per batch ($17) per batch $19 per batch O ($52) per batch

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Oakton Community College Tools For Business Decision Making

Authors: Paul D. Kimmel ,Jerry J. Weygandt ,Donald E. Kieso

6th Edition

1118113632, 978-1118113639

More Books

Students also viewed these Accounting questions

Question

Discuss the limitations of K-means clustering.

Answered: 1 week ago

Question

7. What decisions would you make as the city manager?

Answered: 1 week ago

Question

8. How would you explain your decisions to the city council?

Answered: 1 week ago