multiple choice question 2- Sheridan Companymanufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcycle companies and internally to the Production Division. It has been decided that the Engine Division will sell13000units to the Production Division at1050a unit. The Engine Division, currently operating at capacity, has a unit sales price of $1950and unit variable costs and fixed costs of $1050and $900, respectively. The Production Division is currently paying $1800per unit to an outside supplier. $80per unit can be saved on internal sales from reduced selling expenses. What is the minimum transfer price that the Engine Division should accept? $900 $1870 $1950 $1800 3- Coronado Industriesmanufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcycle companies and internally to the Production Division. It has been decided that the Engine Division will sell18000units to the Production Division at1050a unit. The Engine Division, currently operating at capacity, has a unit sales price of $2050and unit variable costs and fixed costs of $1050and $1000, respectively. The Production Division is currently paying $1900per unit to an outside supplier. $100per unit can be saved on internal sales from reduced selling expenses. What is the increase/decrease in overall company profits if this transfer takes place? Increase $1668293 Decrease $2700000 Decrease $900000 Increase $15300000 4-The Can Division ofSheridan Companymanufactures and sells tin cans externally for $0.80per can. Its unit variable costs and unit fixed costs are $0.24and $0.12, respectively. The Packaging Division wants to purchase 50,000 cans at $0.36a can. Selling internally will save $0.07a can. Assuming the Can Division is already operating at full capacity, what is the minimum transfer price it should accept? $0.43 $0.79 $0.73 $0.44 7- Bonita Industrieshas variable manufacturing costs per unit of $20, and fixed manufacturing cost per unit is $15. Variable selling and administrative costs per unit are $7, while fixed selling and administrative costs per unit are $6.Bonitadesires an ROI of $7.30per unit. IfBonita Industriesuses the absorption-cost approach, what is its markup percentage? 22.12% 15.21% 7.60% 58.00% Concord Corporationis using the target cost approach on a new product. Information gathered so far reveals: Expected annual sales300000units Desired profit per unit$0.35 Target cost$171000 What is the target selling price per unit? $0.92 $0.57 $0.35 $0.70 Sunland Companyproduces high definition television sets. The following information is available for this product: Fixed cost per unit$50Variable cost per unit750Total cost per unit800Desired ROI per unit200 Sunland Company's markup percentage would be 29%. 27%. 58%. 25%. 13- Sunland Companyrequired production for June is82000units. To make one unit of finished product, three pounds of direct material Z are required. Actual beginning and desired ending inventories of direct material Z are250000and280000pounds, respectively. How many pounds of direct material Z must be purchased? 258000. 228000. 276000. 246000. 14- Concord Corporationestimates its sales at230000units in the first quarter and that sales will increase by23000units each quarter over the year. They have, and desire, a25% ending inventory of current quarter's sales in units. Each unit sells for $25.40% of the sales are for cash.70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Production in units for the third quarter should be budgeted at 350750. 281750. 264500. 276000. 15-Oriole Companyestimates its sales at150000units in the first quarter and that sales will increase by17000units each quarter over the year. They have, and desire, a25% ending inventory of finished goods. Each unit sells for $25.40% of the sales are for cash.70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Cash collections for the third quarter are budgeted at $2591500. $5329867. $3772000. $4523500. 16- Waterway Industriesestimates its sales at220000units in the first quarter and that sales will increase by22000units each quarter over the year. They have, and desire, a25% ending inventory of current quarter's sales in units. Each unit sells for $35.40% of the sales are for cash.70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Production in units for the third quarter should be budgeted at 264000. 253000. 269500. 335500. 22- Coronado Industriesis evaluating its Piquette division, an investment center. The division has a $52000controllable margin and $340000of sales. How much willCoronado's average operating assets be when its return on investment is10%? $572000 $520000 $288000 $340000 24- A company purchases10000pounds of materials. The materials price variance is $12000favorable. What is the difference between the standard and actual price paid for the materials? Cannot be determined from the data provided. $1.20 $0.83 $1.00 25- A company uses30000pounds of materials for which it paid $8a pound. The materials price variance was $15000unfavorable. What is the standard price per pound? $8.50 $0.50 $7.50 $8.00 27- Sheridan Companyhas a materials price standard of $2.00per pound.5700pounds of materials were purchased at $2.20a pound. The actual quantity of materials used was5700pounds, although the standard quantity allowed for the output was5200pounds. Sheridan Company's materials price variance is $1040U. $1140F. $100U. $1140U