management accounting

"Question $13(1$ point$)$

Question

Myriam, director of division B$,$ has complete autonomy to make decisions involving better cost management. The following data concerns Division B forecasts for the year $2021$:

Average active balance $$10,000,000$

Total annual fixed cost $$5,000,000$

Unit variable cost $$30$

Planned sales volume $100,000$ units

Unit selling price $$100$

The company requires a minimum rate of return of $16\%.$ She will grant a promotion to Myriam if her division B displays a residual net income $($RNR$)$ of $$500,000$ in $2021.$ If Myriam wishes to obtain her promotion, what should she do at the total fixed cost of her division B $?$

Question $13$ options:

increase it by $$500,000$

increase it by $$100,000$

reduce it by $$500,000$

reduce it by $$100,000$

Question $14(1$ point$)$

Question

Turbo's P division has a production capacity of $75,000$ units. Currently it produces and sells $60,000$ units annually on the external market at the regular price of $$100.$ The variable unit production cost of division P is $$50$ and the variable operating costs are $$15$ per unit.

Division Q is currently purchasing $30,000$ units from an external supplier at a price of $$90$ per unit. Division Q wishes to obtain future supplies from division P$.$ However, it only wishes to offer a price of $$87$ to division P$.$ What is the minimum transfer price if division Q wishes to purchase $30,000$ units from division P$?$

Question $14$ options:

Between $$82\mathrm{.}50$ and $$90$

$$82\mathrm{.}50$

$$90$

$$87$

Question $16(1$ point$)$

Question

Company A provides you with the following information for its unique products X and Y$.$ In total A has sold $8,000$ units.

X Y

Turnover

$140000$$

$400000$$

Costs of goods sold

$108000$

$258000$

Gross margin

$32000$

$142000$

Miscellaneous costs

$36000$

$79500$

Result

$(4000$$$)$

$62500$$

The fixed indirect manufacturing costs per unit included in the cost of goods sold of A and the company are $$8$ and $$6,$ respectively. The unit variable miscellaneous costs are $$5$ for X and $$21$ for Y$.$ The other miscellaneous costs are fixed. Y$\text{'}$s units sold are $2,000.$

A wishes to eliminate X$.$ In such a situation the fixed manufacturing costs and the fixed miscellaneous costs remain unchanged. What will be the effect on A$\text{'}$s net profit?

Question $16$ options:

Profit decreases by $$14,000$

Profit decreases by $$2,000$

Profit decreases by $$4,000$

Profit decreases by $$32,000"$