I need help answering these 5 questions....Thank you!

Ch 11. 1. Appropriate Transfer Prices: Opportunity Costs Plains Peanut Butter Company recently acquired a peanutprocessing company that has a normal annual capacity of 4,000,000 pounds and that sold 2,900,000 pounds last year at a price of $2.00 per pound. The purpose of the acquisition is to furnish peanuts for the peanut butter plant, which needs 1,500,000 pounds of peanuts per year. It has been purchasing peanuts from suppliers at the market price. Production costs per pound of the peanutprocessing company are as follows: Direct materials Direct labor Variable overhead Fixed overhead at normal capacity Total $0.50 0.25 0.11 0.18 $1.04 Management is trying to decide what transfer price to use for sales from the newly acquired Peanut Division to the Peanut Butter Division. The manager of the Peanut Division argues that $2.00, the market price, is appropriate. The manager of the Peanut Butter Division argues that the cost price of $1.04 (or perhaps even less) should be used since fixed overhead costs should be recomputed. Any output of the Peanut Division up to 2,900,000 pounds that is not sold to the Peanut Butter Division could be sold to regular customers at $2.00 per pound. (a) Compute the annual gross profit for the Peanut Division using a transfer price of $2.00. $Answer (b) Compute the annual gross profit for the Peanut Division using a transfer price of $1.04. $Answer (c) Which of the following is least likely to motivate the manager to take actions that will maximize corporate profits? Set the transfer price at .86 for all transfers. None of the above. Set the transfer price at .86 for the first 1,100,000 lbs. transferred, and at 2.00 for the next 400,000 lbs. transferred. Set the transfer price at .86 for the first 1,100,000 lbs. transferred. Set the transfer price at 2.00 for all transfers. 0.00 points out of 1.00 2. ROI and Residual Income: Basic Computations Watkins Associated Industries is a highly diversified company with three divisions: Trucking, Seafood, and Construction. Assume that the company uses return on investment and residual income as two of the evaluation tools for division managers. The company has a minimum desired rate of return on investment of 10 percent with a 30 percent tax rate. Selected operating data for three divisions of the company follow. Trucking Division Seafood Division Construction Division Sales $ 1,200,000 Operating assets 600,000 Net operating income 116,000 $ 750,000 250,000 66,000 $ 900,000 350,000 63,000 (a) Compute the return on investment for each division. (Round answers to three decimal places.) Answer Trucking ROI = Answer Seafood ROI = Answer Construction ROI = 3. Income Statements Segmented by Territory Script, Inc., has two product lines. The September income statements of each product line and the company are as follows: SCRIPT, INC. Product Line and Company Income Statements For Month of September Sales Less variable expenses Contribution margin Less direct fixed expenses Product margin Pens Pencils Total $ 30,000 $ 30,000 $ 60,000 (12,000) (12,000) (24,000) 18,000 (9,000) 18,000 (7,000) $ 9,000 $ 11,000 Less common fixed expenses Net income 36,000 (16,000) 20,000 (6,000) $ 14,000 Pens and pencils are sold in two territories, Florida and Alabama, as follows: Pen sales Pencil sales Total sales Florida Alabama $ 18,000 $ 12,000 9,000 21,000 $ 27,000 $ 33,000 The common fixed expenses are traceable to each territory as follows: Florida fixed expenses Alabama fixed expenses Home office administration fixed expenses Total common fixed expenses $ 2,000 3,000 1,000 $ 6,000 The direct fixed expenses of pens, $9,000, and of pencils, $7,000, cannot be identified with either territory. The company's accountants were unable to allocate any of the common fixed expenses to the various segments. Prepare income statements segmented by territory for September, including a column for the entire firm. Do not use negative signs with your answers. Script, Inc. Territory and Company Income Statements For the Month of September Florida Alabama Company Totals Sales: $Answer $Answer $Answer Pens Answer Answer Answer Answer Answer Answer Answer Answer Answer Pencils Total sales Variable costs: Pens Answer Answer Pencils Answer Answer Answer Answer Total Contribution margin Answer Answer Answer Script, Inc. Territory and Company Income Statements For the Month of September Florida Alabama Company Totals Answer Answer Answer $Answer $Answer Answer Common fixed expenses: Answer Pens Direct fixed expenses Territory margin Answer Pencils Answer Home office Answer Total $Answer Net income Ch12 1. Time Value of Money: Basics Using Table 12A.1 and Table 12A.2 of this chapter, determine the answers to each of the following independent situations. (Round answers to the nearest whole number.) (a) The future value in three years of $2,000 deposited today in a savings account with interest compounded annually at 4 percent. $ Answer (b) The present value of $9,000 to be received in six years, discounted at 12 percent. $ Answer (c) The present value of an annuity of $5,000 per year for seven years discounted at 18 percent. $ Answer (d) An initial investment of $42,680 is to be returned in eight equal annual payments. Determine the amount of each payment if the interest rate is 10 percent. $ Answer (e) A proposed investment will provide cash flows of $30,000, $9,000, and $6,000 at the end of Years 1, 2, and 3, respectively. Using a discount rate of 14 percent, determine the present value of these cash flows. Year 1 $ Answer Year 2 $ Answer Year 3 $ Answer (f) Find the present value of an investment that will pay $9,000 at the end of Years 10, 11, and 12. Use a discount rate of 12 percent. $ Answer 4. NPV and IRR: Equal Annual Net Cash Inflows Apache Junction Company is evaluating a capital expenditure proposal that requires an initial investment of $34,520, has predicted cash inflows of $8,000 per year for 15 years, and has no salvage value. (a) Using a discount rate of 16 percent, determine the net present value of the investment proposal.(Round to the nearest whole number.) $ Answer (b) Determine the proposal's internal rate of return. Answer % (c) What discount rate would produce a net present value of zero? Answer % 5. Ranking Investment Proposals: Payback Period, Accounting Rate of Return, and Net Present Value Presented is information pertaining to the cash flows of three mutually exclusive investment proposals: Initial investment Cash flow from operations Year 1 Year 2 Year 3 Disinvestment Life (years) Proposal X Proposal Y Proposal Z $81,000 80,000 1,000 41,000 0 3 years $81,000 40,500 40,500 41,000 0 3 years $81,000 81,000 0 1 year (a) Select the best investment proposal using the payback period, the accounting rate of return on initial investment, and the net present value criteria. Assume that the organization's cost of capital is 14 percent. Round accounting rate of return four decimal places. Round net present value to the nearest whole number. Use negative signs with your answers when appropriate. Proposal X Answer Proposal Y Accounting rate of return Answer Net present value Best proposal Answer Answer Answer Payback period (years) Proposal Z Answer Answer Answer Answer Answer Answer Answer (b) Factors explaining the differences in rankings include all of the following except: While the accounting rate of return explicitly considers the cost of the asset as part of annual depreciation the net present value method considers the cost of the asset as part of the initial investment. The net present value method considers the cost of capital while the payback method does not discount future cash flows. Net present value considers the timing of cash flows while payback considers only total cash flows. The accounting rate of return considers profitability while payback only considers the time required to recover the investment