1. If a company's operations consist of the following, calculate its ROI:

Sales	$400,000
Variable expenses	260,000
Contribution margin	140,000
Fixed expenses	92,000
Net operating income	$48,000
Average operating assets	$375,000

		12.0%
		93.75%
		1.0667%
		12.8%

2. The following information relates to a company that uses normal costing:

• No jobs in progress at the beginning of the month & no beginning inventories
• 2 jobs: Job A and Job B started and completed during the month
• Estimated total fixed manufacturing overhead = $13,000
• Estimated variable manufacturing overhead = $1.00 / direct labor hour (DLH)
• Estimated direct labor hours (DLHs) = 2,000
• Actual manufacturing overhead costs = $12,800

	Job A	Job B
Direct Materials	$13,000	$7,700
Direct Labor	$21,000	$7,500
Actual direct labor hours	1,400	470

What is the total job cost for Job A?

		$44,500
		$44,360
		$43,733
		$31,500

3. A company makes three products: X, Y, and Z. The following details relate to those products:

	Product X	Product Y	Product Z
Demand (in units)	700	600	800
Selling price / unit	$80.00	$65.00	$45.00
Variable cost / unit	$35.00	$26.00	$20.00
Machine-hours / unit required	3.0	1.25	2.5

The company has a total of 3,600 machine-hours available. Which of the following is true?

		Products Y and Z should be produced up to demand.
		Products X and Z should be produced up to demand.
		Products X and Y should be produced up to demand.
		Products X, Y, and Z should be produced up to demand.