Problem 5 (10 Points) Division A of Kern Co. has sales of $350,000, cost of goods sold for $200,000, operating expenses of $30,000, and invested assets of $600,000. What is the return on investment for Division A? Answer: Explain your answer: Problem 6 (10 Points) When the manager has the responsibility and authority to make decisions that affect costs and revenues but no responsibility for or authority over assets invested in the department, the department is called: Answer: Problem 7 (10 Points) Which of the following statements describe variable costs? A. Costs that vary on a per-unit basis as the level of activity changes B. Costs that vary in total in direct proportion to changes in the level of activity c. Costs that remain the same in total dollar amount as the level of activity changes D. Costs that vary on a per-unit basis, but remain the same in total as the level of activity changes Answer: