not all parts included. just answer 2&3 and 4. a (no need for solutions steps):

THE QUESTION:

ANSWERS SHEET:

The Switch division of Tornax Inc. produces a small switch that is used by various companies as a component part in their products. Tornax operates its divisions as autonomous units, giving its divisional managers great discretion in pricing and other decisions. Each division is expected to generate a minimum required rate of return of at least 14% on its operating assets. The Switch Division has average operating assets of $700,000. The switches are sold for $5 each. Variable costs are $3 per switch, and fixed costs total S462,000 per year. The division has a capacity of 300,000 switches each year. Required: 1. How many switches must the Switch Division sell each year to generate the desired rate of return on its assets? Number of switches 280000 a. What is the margin earned at this level of sales? (omit the sign in your response.) Margin b. What is the turnover at this level of sales? Turnover 1400000