Problem 1

Tokyo Division of X Corp sells product X in the market for 6,000 per unit. The following data are as follows for the production and sale of 3,400 units in CY 2020: Variable Mfg cost of 2,000 per unit; variable expense of 1,800 per unit; Fixed cost related to Tokyo Division totaled 6,080,000 (includes Fixed OH of 4,000,000) and Total Assets of 12,500,000. X Corp instructed Tokyo division to have a desired rate of return of 20%. What rate of return will be earned on total assets?

a. 11.20%

b. 43.20%

c. 43.20

d. 20%

e. 10.50%

f. None of the above

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Problem 2

Tokyo Division of X Corp sells product X in the market for 6,000 per unit. The following data are as follows for the production and sale of 3,400 units in CY 2020: Variable Mfg cost of 2,000 per unit; variable expense of 1,800 per unit; Fixed cost related to Tokyo Division totaled 6,080,000 (includes Fixed OH of 4,000,000) and Total Assets of 12,500,000. X Corp instructed Tokyo division to have a desired rate of return of 20%. How many units of product must be sold to obtain the desired rate of return if no other part of the budget will be changed.

a. 3,900 units

b. 3,200 units

c. 23,000 units

d. 4,600 units

e. None of the above

**** please show the computation/solution for the problem. it will be a big help if you answer this in 10-20 mins. thank you so much ****