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Please EXPLAIN every question and show how you got the answer. Thank you! Use the following information for the next 3 questions. Nelson Co. incurs
Please EXPLAIN every question and show how you got the answer. Thank you!
Use the following information for the next 3 questions. Nelson Co. incurs $568,000 in fixed costs while producing three products with the following characteristics: Sales Mix Unit Contribution Contribution Product (Units) Margin Margin Ratio T 5 $900 45% Q 3 600 40% R 2 400 35% 1. What is the breakeven point in units? a. 400 b. 240 c. 299 d. 800 e. None of the above 2. At the breakeven point, what is the dollar sales volume for Product Q? a. $800,000 b. $360,000 c. $288,000 d. $120,000 e. None of the above 3. A segment with an ROI of 30% has an income of $84,000. The company's required rate of return on segment investments is 18%. The segment's residual income is a. $50,400 b. $25,200 c. $26,712 d. $33,600 e. None of the above 4. Division A of a firm produces a single product, which is sold only to Division B. Division A has a total investment of $1,000,000, while Division B has a total investment of $2,000,000. Division A annually sells 100,000 units of its product to Division B for $5 per unit and earns $150,000 in operating income. Division B currently earns $250,000. If Division A raises its selling price to $6 per unit and nothing else changes, a. Division A's ROI will increase to 20% b. The firm's overall ROI will rise c. The firm's overall ROI will fall d. The firm's overall ROI will remain unchanged e. Can not be determine from this informationStep by Step Solution
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