Hillside Inc provides you the following financial information for 2017 and 2018:

2018

Sales $16,000,000

Cost of Goods Sold (10,000,000)

Operating Expenses (2,000,000)

SG&A Expenses (1,000,000)

Net Operating Income $3,000,000

12/31/2018 12/31/2017

Operating Assets $9,000,000 $5,000,000

Investment Assets $ 3,000,000 $1,000,000

Total Assets $12,000,000 $6,000,000

Dividends Paid $1,000,000

Minimum Required Rate of Return on Projects: 10% Compute Hillside's 2018 Residual Income.

Select one: a. $2,300,000 b. $3,000,000 c. $1,300,000 d. $2,100,000 e. None of the other answers are correct

Jimmy G purchased a Chevy Malibu for $30,000 at the beginning of 2017 and expects to keep the car 5 years (thru 2021).

He incurs following initial and annual operating costs related to the car:

Cost of Malibu $30,000 at time of purchase

Insurance $1,200/year

Gasoline $0.14 per mile

Garage Rent $360/year The Insurance must be paid regardless whether Jimmy G uses the Malibu or not. -The current cost of gasoline is 14 cents/mile--this amount has remained constant

over time - If Jimmy G decides to not use the Malibu she will need to pay $360 to store it in garage

for the year. In 2018, Jimmy G would like to go on a 20,000 mile cross-country trip. He is trying to decide whether to:

1. Use the Malibu for the trip.2. Ride with a friend in her car for the trip and leave the Malibu in storage for the

year If Jimmy G decides to use the Malibu for the trip he will incur the cost of insurance on the Malibu and the cost of gasoline at $0.14 per mile (for 20,000 miles)

If Jimmy G shares goes on the trip with his friend in her car he will incur the cost of insurance and garage rent for the Malibu as well as the cost of gasoline at $0.14 per mile (for 20,000 miles)

What costs related to this decision (use the Chevy Malibu or ride with a friend) are relevant in Jimmy G's decision (i.e. avoidable or differential)?Select one:

a. None of the other answers are correct b. Insurance c. Garage Rent d. Cost of Malibu e. Cost of Gasoline

Sunrise Inc provides you with the following information:Sales in units: 350,000 units

Sales Revenues $1,000,000

Variable Operating Costs (400,000)

Variable Selling & Admin Costs (100,000)

Fixed Operating Costs (150,000)

Fixed Selling & Admin Costs (130,000)

Net Operating Income $220,000 What is the Sunrise Inc's MARGIN OF SAFETY PERCENTAGE?Select one:a. 44% b. 56% c. 62% d. None of the other answers are correct e. 50%