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Question 4 (Mandatory) (2 points) The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:
Question 4 (Mandatory) (2 points) The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: Rails Locomotive Corporate Division Division Total Cost of goods sold $47,200 $30,720 Direct operating expenses 27,200 20,040 Net sales 98,000 68,000 Interest expense $ 2,040 General overhead 18,160 Income tax 4,700 The gross profit for the Rails Division is: $50,800 $23,600 $13,240 $33,280 Question 8 (Mandatory) (2 points) Division X of O'Blarney Company has sales of $300,000, cost of goods sold of $120,000, operating expenses of $58,000, and invested assets of $150,000. What is the rate of return on investment for Division X? 9.15% 81.3% 40.7% 200% Question 9 (Mandatory) (2 points) Materials used by Square Yard Products Inc. in producing Division 3's product are currently purchased from outside suppliers at a cost of $5 per unit. However, the same materials are available from Division 6. Division 6 has unused capacity and can produce the materials needed by Division 3 at a variable cost of $3 per unit. A transfer price of $3.20 per unit is established, and 40,000 units of material are transferred, with no reduction in Division 6's current sales. How much would Division 3's income from operations increase? O $150,000 $50,000 $32,000 $72,000
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