QUESTION 24

1. The following data are available for the South Division of Manhattan Products, Inc. and the single product it makes:

   Unit selling price	$	40
   Variable cost per unit	$	32
   Annual fixed costs	$	300,000
   Average operating assets	$	1,700,000

   How many units must South sell each year to have an ROI of 12%?

   	A.	212,500.
   	B.	50,400.
   	C.	204,000.
   	D.	63,000.

1 points

QUESTION 25

1. The Country Garden Company's current net operating income is $19,435 and its average operating assets are $84,500. The Country Garden's required rate of return is 20%. A new project being considered would require an investment of $16,500 and would generate annual net operating income of $3,630. What is the residual income of the new project?

   	A.	22.84%
   	B.	22.00%
   	C.	$(165).
   	D.	$330.