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Please help me answer these as thoroughly as possible. Thank so much! 1) Division I of Norris Company has a rate of return on investment

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Please help me answer these as thoroughly as possible. Thank so much!

image text in transcribed 1) Division I of Norris Company has a rate of return on investment of 28% and a profit margin of 20%. What is the investment turnover? A) 3.6 B) 1.4 C) 5.0 D) .7 2) Materials used by Aro-Products Inc. in producing Division 3's product are currently purchased from outside suppliers at a cost of $5 per unit. However, the same materials are available from Division 6. Division 6 has unused capacity and can produce the materials needed by Division 3 at a variable cost of $3 per unit. A transfer price of $3.20 per unit is established, and 40,000 units of material are transferred, with no reduction in Division 6's current sales. How much would Division 6's income from operations increase? A) $8,000 B) $15,000 C) $80,000 D) $150,000 3) Using the data from the Koko Company, determine the divisional income from operations for the A and B regions. A Region $600,000 200,000 150,000 Sales Cost of goods sold Selling expenses B Region $900,000 350,000 275,000 Service department expenses $80,000 Purchasing Payroll accounting 40,000 4) The sales, income from operations, and invested assets for each division of Winston Company are as follows: Sales Div. C $5,000,000 Div. D 6,800,000 Div. E 3,750,000 Income from Operations Invested Assets $630,000 760,000 750,000 $3,900,000 4,300,000 7,250,000 Management has established a minimum rate of return for invested assets of 8%. (a) Determine the residual income for each division. (b) Based on residual income, which of the divisions is the most profitable? 5) Wilson Company is considering replacing equipment which originally cost $500,000 and which has $460,000 accumulated depreciation to date. A new machine will cost $790,000. What is the sunk cost in this situation? A) $330,000 B) $500,000 C) $40,000 D) $290,000 6) Benson Co. is considering disposing of a machine with a book value of $12,500 and estimated remaining life of five years. The old machine can be sold for $1,500. A new high-speed machine can be purchased at a cost of $25,000. It will have a useful life of five years and no residual value. It is estimated that variable manufacturing costs will be reduced from $26,000 to $23,500 if the new machine is purchased. The total net differential increase or decrease in cost for the new equipment for the entire five years is: A) Decrease of $11,000 B) Decrease of $15,000 C) Increase of $11,000 D) Increase of $15,000 7) McClelland Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. McClelland desires a profit equal to a 21% rate of return on invested assets of $600,000. Fixed factory overhead cost Fixed selling and administrative costs Variable direct materials cost per unit Variable direct labor cost per unit Variable factory overhead cost per unit Variable selling and administrative cost per unit $37,500 7,500 4.50 1.88 1.13 The unit selling price for the company's product is: A) $15.00 B) $13.82 C) $14.86 D) $14.76 8) Pnok Company has been purchasing a component, Part Q, for $18.90 a unit. Pnok is currently operating at 70% of capacity and no significant increase in production is anticipated in the near future. The cost of manufacturing a unit of Part Q, determined by absorption costing methods, is estimated as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Total Prepare a differential analysis report, dated March 12 of the current year, on the decision to make or buy Part Q. 9) FDE Manufacturing Company has a normal plant capacity of 37,500 units per month. Because of an extra large quantity of inventory on hand, it expects to produce only 30,000 units in May. Monthly fixed costs and expenses are $112,500 ($3 per unit at normal plant capacity) and variable costs and expenses are $8.25 per unit. The present selling price is $13.50 per unit. The company has an opportunity to sell 7,500 additional units at $9.90 per unit to an exporter who plans to market the product under its own brand name in a foreign market. The additional business is therefore not expected to affect the regular selling price or quantity of sales of FDE Manufacturing Company. Prepare a differential analysis report, dated April 21 of the current year, on the proposal to sell at the special price. 10) Gannett Glass Company manufactures three types of safety plate glass: large, medium, and small. All these products have high demand. Thus, Gannett Glass is able to sell all the safety glass that it can make. The production process includes an autoclave operation, which is a pressurized heat treatment. The autoclave is a production bottleneck. Total fixed costs are $550,000. In addition, the following information is available about the three products: Small Unit selling price Unit variable cost Unit contribution margin Autoclave hours per unit Total process hours per unit Budgeted units of production Medium Large $240 126 $114 $180 80 $100 $120 68 $52 Small 6 Medium 10 Large 4 20 16 12 2,500 2,500 2,500 A) Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production. B) Prepare an analysis showing which product if the most profitable per bottleneck hour

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