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Problem #2 The Production Division produces and sells 150,000 toy pianos (maximum capacity is 200,000 pianos). The unit cost of manufacturing one toy piano is
Problem #2 The Production Division produces and sells 150,000 toy pianos (maximum capacity is 200,000 pianos). The unit cost of manufacturing one toy piano is as follows (for 150,000 pianos): Dire ct materials $12 Direct labor 2 Variable overhead 3 Fixed overhead g Total cost $22 Other costs incurred by the Production Division are as follows: Total xed selling and administrative $450,000 Variable selling $1 per unit Currently, the Production Division is selling toy pianos for $29. Required: 1. Suppose that operating assets of the Production Division total $10 million. Compute the ROI for the coming year. Suppose that operating assets of the Production Division total $10 million. Compute the Assets Turnover for the coming year. Suppose that operating assets of the Production Division total $10 million. Compute the Operating Income Margin for the coming year
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