Question 23

If return on investment is 15% and average operating assets amounts to $2,000,000, what is the controllable margin amount?

Answer

		$300,000
		$325,000.
		$375,000.
		$425,000.
		NONE OF THESE

Question 20

Munson Company reported the following information for 2011:

October

November

December

Budgeted sales

$930,000

$870,000

$1,080,000

All sales are on credit. Customeraccounts are collected 50% in the month of sale and 50% in the following month. How much is still owed toMunson at December 31st if $12,800 were not collected from the amount that should have been collected from November sales in December?

Answer

		$975,800
		$552,800
		$870,800
		$435,800

Question 10

Giles Company is preparing its direct labor budget for May. Projections for the month are that 16,700 units are to be produced and that direct labor time is three hours per unit. If the labor cost per hour is $12, what is the total budgeted direct labor cost for May?

Answer

		$679,600.
		None of these.
		$590,400.
		$601,200.
		$463,380.

Question 6

Naples, Inc. recorded operating data for its shoe division for the year.

Sales$750,000

Contribution margin135,000

Total fixed costs90,000

Average total operating assets300,000

How much is ROI for the year if management is able to identify a way to improve the contribution margin by $30,000, assuming fixed costs are held constant?

Answer

		45%
		18%
		25%
		12%

Question 5

Ross Corp.'s direct materials budget shows total cost of direct materials purchases for January $250,000, February $300,000 and March $350,000. Cash payments are 60% in the month of purchase and 40% in the following month. The budgeted cash payments for March are

Answer

		$260,000.
		$300,000.
		$330,000.
		$320,000.

Question 4

Flint Company estimates its sales at 120,000 units in the first quarter and that sales will increase by 12,000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Production in units for the third quarter should be budgeted at

Answer

		183,000.
		147,000.
		138,000.
		144,000.