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Materials used by lefferson Company in producing Division Cs product are currently purchased from cutside suppliers at a cost of $10.00 per unit. However, the

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Materials used by lefferson Company in producing Division Cs product are currently purchased from cutside suppliers at a cost of $10.00 per unit. However, the same. materals are available fram Divion A. Division A has unused capacity and can produce the materials needed by Divion C at a variabie cost of s. 50 per unit, A transfer price of 59.50 per unit is negotiated and 25,000 units of material are branserred, with no reduction in Oivision Ass current sales. mpany's total operating income will increase by a. 331.400 b. 1190900 c. 1100.000 f. 10,400 Mason Corporation had $1,106,000 in invested assets, soles of $1,228,000, operating income amounting to $211,000, and a desired minimum return on investment of 14%. The investment turnover (rounded to two decimal places) for Mason Corporation is 1.11 b. 167 c. 058 d. 133 twey Corperation purchased and used 129,000 board feet of lumber in production at a total cost of 51,548,000, Originat production had been budgeted for 22,000 units with a standard materials quantiy of 5.7 boord feet per unit and a standard price of \$12. per board foot. Actual production was 23,500 units. The direct materials quantiy variance is 3. 536,400 intw wabir b. $,3,400 frronhte C. 56000 andavintle d. ses 900 rrwable

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