Please provide the correct answers/solutions to the following 5 simple accounting problems. Thank you.

5. Mesopotamian Materials Inc. (MMI) has two decentralized divisions (Ur and Babylon) that have decision making responsibility over the amount of resources invested in their divisions. Recent financial extracts for both divisions are presented below: Ur Babyl on Fixed assets, gross $2,50 $4,000 0 Accumulated depreciation $1,50 $1,200 0 Other assets $500 Liabilities $500 $1,000 Sales Net income after tax* Average age of fixed assets (years) $750 $6,75 $7,200 0 $743 $1,008 15 5 *Net income is after tax but before interest MMI's weighted average cost of capital (WACC) is 11.5%. The MMI measures division performance based on the book value of net assets. The producer price index 15 years ago was 100, 116 five years ago, and currently is 125. Which is true, when fixed asset costs are adjusted upward for inflation? A. Babylon's RONA is 35.8% B. Babylon's RONA is 26.3% C. Ur's depreciation expense increases by $19 more than Babylon's D. Babylon's price adjustment multiplier is 1.16 E. None of the above 11. Grammy Girl Products (GGP) has two divisions, Bones and Biscuits, both of which usually have independence in sourcing and pricing decisions. There is an unlimited supply of raw bones. Biscuits manufactures, amongst other items, a specialty product called BisBone. The BisBone formula requires 70% bone meal and 30% cereal per lbs, plus a dollop of meat flavoring. BisBone is usually sold in 20-lbs cases and processed bones in 5-lbs packs. Cost and sales pricing data appears below. BisBo Bone ne s Sales price, per case (pack) $100.0 $20.0 0 0 Raw bones, per lbs $1.50 Bone meal, per lbs (external seller) $3.00 Cereals, per lbs $0.50 Meat flavoring, per case $3.00 Processing, per lbs $1.00 $0.80 Packaging, per case (pack) $1.25 $0.75 Overheads, per case (pack), 40% fixed $10.00 $7.00 In lieu of its normal processing, Bones sometimes grinds raw bones into bone meal (grinding costs $.05 per lbs) When bone meal is sold to Biscuits, bulk packaging is used which costs $1 per 100 lbs sack; when sold to other firms, it is packed in 50lbs containers, costing $3 each. Bones prices the container product at $180. Biscuits just received an order for 800 cases of one of its specialty products, BisBone, and is contemplating purchasing bone meal from its sister division. Should Biscuits buy bone meal from Bones at the price calculated in Q5-9? A. Yes, because it is $0.55 per lb cheaper than its external supplier's B. No, because it is $0.55 per lb more costly than its external supplier's C. Yes, because it is $0.025 per lb cheaper than its external supplier's D. No, because it is $0.60 per lb more costly than its external supplier's E. None of the above 12. Grammy Girl Products (GGP) has two divisions, Bones and Biscuits, both of which usually have independence in sourcing and pricing decisions. There is an unlimited supply of raw bones. Biscuits manufactures, amongst other items, a specialty product called BisBone. The BisBone formula requires 70% bone meal and 30% cereal per lbs, plus a dollop of meat flavoring. BisBone is usually sold in 20-lbs cases and processed bones in 5-lbs packs. Cost and sales pricing data appears below. BisBo Bone ne s Sales price, per case (pack) $100.0 $20.0 0 0 Raw bones, per lbs $1.50 Bone meal, per lbs (external seller) $3.00 Cereals, per lbs $0.50 Meat flavoring, per case $3.00 Processing, per lbs $1.00 $0.80 Packaging, per case (pack) $1.25 $0.75 Overheads, per case (pack), 40% fixed $10.00 $7.00 In lieu of its normal processing, Bones sometimes grinds raw bones into bone meal (grinding costs $.05 per lbs) When bone meal is sold to Biscuits, bulk packaging is used which costs $1 per 100 lbs sack; when sold to other firms, it is packed in 50lbs containers, costing $3 each. Bones prices the container product at $180. Biscuits just received an order for 800 cases of one of its specialty products, BisBone, and is contemplating purchasing bone meal from its sister division. Should GGP encourage an internal transaction for this order if Bones has outside customers for the bone meal, and, if so, at what price? A. No, because it will undermine the benefits of decentralization B. Yes, at $2.70 per lb C. No, because GGP will be worse off D. Yes, at the external market price of $3 per lb E. Yes, but at some other price 10. Printing Press (PP) is operating close to capacity. The sales department earns commissions of 8% on sales. Setup charges amount to $60 per item, plus variable costs of $1 per copy. When capacity is reached, PP can still meet the order, but incurs overtime charges and other variable overhead of 25 cents per copy. The production manager complains that the sales staff promise delivery within very tight deadlines in order to secure orders, which means that overtime and other variable overhead has to be paid. A recent rush order for 100 engraved wedding invitations was secured at the normal price of $200. Which is true? A. The present arrangements maximize profits for PP B. Sales staff would coordinate rush orders with production if the excess charges were to be charged against their sales commission C. Sales will increase if sales commission arrangements are changed D. Sales staff are not rewarded for maximizing sales at any cost E. None of the above 12. Bertie's Burritos, a fast food enterprise, wants to understand his cost structure. He collected data, which appears below, to analyze costs using the high-low method. Month Volume Total costs January 5,000 $2,700 February 7,000 $3,700 March 6,000 $3,400 Which is true? A. Estimated variable costs are 70 cents per burrito B. Fixed costs cannot be estimated C. Estimated fixed costs are $200 D. Total costs at volume of 8,000 are estimated at $4,200 E. c) and d) only