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Perez Publications established the following standard price and costs for a hardcover picture book that the company produces. Perez planned to make and sell 22.000

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Perez Publications established the following standard price and costs for a hardcover picture book that the company produces. Perez planned to make and sell 22.000 copies of the book. Required: o. - d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 21,000 and 23,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 23,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e.. zero variance).) Adams Publications established the following standard price and costs for a hardcover picture book that the company produces. Assume that Adams actually produced and sold 39,000 books. The actual sales price and costs incurred follow: Required a. \& b. Determine the flexible budget variances and also Indicate whether each variance is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Sorrento Corporation's balance sheet indicates that the company has $700.000 invested in operating assets. During the year. Sorrento earned operating income of $98,000 on $1,400,000 of sales. Required a. Compute Sorrento's profit margin for the year. b. Compute Sorrento's tumover for the year. c. Compute Sorrento's return on investment for the year. d. Recompute Sorrento's ROI under each of the following independent assumptions: (1) Sales increase from $1,400,000 to $1,680,000, thereby resulting in an increase in operating income from $98,000 to $110.880. (2) Sales remain constant, but Sorrento reduces expenses, resulting in an increase in operating income from $98,000 to $100,800, (3) Sorrento is able to reduce its invested capital from $700,000 to $560,000 without affecting operating income

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