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Cash Payback Period A project has estimated annual net cash flows of $37,500. It is estimated to cost $120,000. Determine the cash payback period. Round your answer to one decimal place. 3.2 years Magnolia Company's Division A has operating income of $74,900 and assets of $323,400. The minimum acceptable return on investment is 8% What is the residual income for the division? 49,028 High-Low Method The manufacturing costs of Rosenthal Industries for the first three months of the year follow: Total Costs Production January $259,740 2,220 units February 338,530 3,910 March 404,040 5,920 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. a. Variable cost per unit 39 Total fixed cost $206,460 $ Cost of Quality Report A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms $90,000 Processing lost customer reservations 45,000 Rework incorrectly prepared room service meal 135,000 Employee training 180,000 Total $450,000 Sales are $3,000,000. Prepare a cost of quality report. Round percent of sales to one decimal place. Cost of Quality Report Quality Cost Percent of Total Quality Cost Percent of Total Sales Quality Cost Classification Prevention Appraisal Internal failure 180,000 40 % 6 % 90,000 20 % 3 % 135,000 30 % 4.5 % External failure 45,000 10 % 10 % Total 450,000 100 % 23.5 % Internal Rate of Retur A project is estimated to cost $242,298 and provide annual net cash flows of $54,000 for eight years, Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.505 8 6.210 5.335 4.968 4,487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 5.650 5.019 4.192 6.145 Determine the internal rate of return for this project, using the Present Value of an Annuity of $1 at Compound Interest table shown above 15 % Production 7 25 18 Support Department Cost Allocation-Sequential Method Snowy River Stallion Inc. produces horse and rancher equipment. Costs from Support Department 1 are allocated based on the number of employees. Costs from Support Department 2 are allocated based on asset value. Relevant department information is provided in the following table: Support Support Production Department 1 Department 2 Department 1 Department 2 Number of employees Asset value $1,150 $670 $6,230 $5,100 Department cost $20,000 $15,500 $99,000 $79,000 Using the sequential method of support department cost allocation, determine the total costs from Support Department 1 (assuming they are allocated first) that should be allocated to support Department 2 and to each of the production departments, Support Production Department 2 Department 1 Department 2 Support Department 1 cost allocation 2,800 10,000 7,200 Production