Mihok Corporation has provided the following financial data:

Year 2 Year 1

Stockholders' equity:

Common stock, $3 par value $300,000 $300,000

Additional paid-in capitalcommon stock 100,000 100,000

Retained earnings 375,000 370,000

Total stockholders' equity $775,000 $770,000

Income Statement

for the Year Ended December 31, Year 2

Sales $1,380,000

Cost of goods sold 780,000

Gross margin 600,000

Operating expenses 567,714

Net operating income 32,286

Interest expense 18,000

Net income before taxes 14,286

Income taxes (30%) 4,286

Net income $10,000

Dividends on common stock during Year 2 totaled $5,000. The market

price of common stock at the end of Year 2 was $0.97 per share.

Required:

A. What is the company's earnings per share for Year 2?

B. What is the company's price-earnings ratio for Year 2?

C. What is the company's dividend payout ratio for Year 2?

D. What is the company's dividend yield ratio for Year 2?

E. What is the company's book value per share at the end of Year 2?

Sund Corporation bases its budgets on the activity measure

"customers served." During April, the company plans to serve 38,000

customers. The company has provided the following data concerning

the formulas it uses in its budgeting:

Fixed Element per Month Variable Element per Month

Revenue --- $2.10

Wages and salaries $25,000 $0.50

Supplies $0 $0.30

Insurance $6,200 $0.00

Miscellaneous expenses $2,500 $0.40

Required:

Prepare the company's planning budget for April. What is the net

operating income?

Tullius Corporation has received a request for a special order of 8,000 units of product C64 for

$50.00 each. The normal selling price of this product is $53.25 each, but the units would need

to be modified slightly for the customer. The normal unit product cost of product C64 is

computed as follows:

Direct materials $18.10

Direct labor 7.40

Variable manufacturing overhead 5.20

Fixed manufacturing overhead 4.80

Unit production cost $35.50

Direct labor is a variable cost. The special order would have no effect

on the company's total fixed manufacturing overhead costs. The

customer would like some modifications made to product C64 that

would increase the variable costs by $5.00 per unit and that would

require a one-time investment of $43,000 in special molds that would

have no salvage value. This special order would have no effect on the

company's other sales. The company has ample spare capacity for

producing the special order.

Required:

How much is the "effect" (incremental net operating income) on the

company's total net operating income through accepting the special

order?