RT Corporation is a large corporation with several different divisions producing a variety of products. The Silk Division produces a high-quality silk fabric. The Silk Division e capacity to produce 24,000 rolls of fabric per month and the variable cost of each roll is $35, Currently, the Silk Division sells approximately 21,000 rolls of silk each - to customers for $50 per roll. Another division of FRT Corporation, the Scarf Division, is interested in using the silk to produce scarves, and they are interested in asing 12,000 rolls of silk fabric per month from the Silk Division. The Silk Division would not realize any savings in variable costs from selling the silk to another division nd of selling to outside customers. From the Silk Division's standpoint, the lowest acceptable transfer price would be: Multiple Choice $46.25 per unit $50,00 per unit $35.00 per unit) $26.25 per unit Assets: Cash Accounts receivable Inventory Plant and equipment (net). Long-Term Investment Land (held for future use) Total assets Liabilities and owners' equity: Accounts payable Long-term debt Stockholders' equity Total liabilities and owners' equity Sales: Less operating expenses Net operating income Less interest and taxes: Interest expense Tax expense Net income Income Statement Beginning Balance Ending Balance $ 303,000 169,000 $ 337,392 217,000 242,000 238,000 481,000 407,000 256,000 308,000 280,000 280,000 $ 1,731,000 $ 1,787,392 Margin Turnover Return on investment $ 103,600 191,808 $ 171,000 810,000 750,000 $ 1,731,000 % $ 2,220,000 1,687,200 532,800 Last year, Marble Patch, Inc. paid dividends of $198,000. The "Long-Term Investments" on the corporation's statement of finar position represents an investment in the stock of another company. % 295,408 $ 237,392 Required: a. Compute Marble Patch, Inc.'s margin, turnover, and return on investment for last year. b. Marble Patch Inc. desires a minimum required return of 40%. What was the corporation's residual income last year? Complete this question by entering your answers in the tabs below. $ 188,000 810,000 789,392 $ 1,787,392 Required A Required B Compute Marble Patch, Inc.'s margin, turnover, and return on investment for last year. (Round your Percentage and Turnover answers to two decimal places.) 17 40 points 01:20:31 Spider Fish Desk Corporation manufactures and sells desks that are designed primarily for the young teenager market. The company manufactures all of the parts for the desks, but they have been considering the possibility of purchasing some of the component parts Instead. In particular, they are negotiating with an outside supplier to manufacture and supply the pull-out keyboard trays that are installed in every desk. Spider Fish Desk Corporation's cost accountants have been preparing some analyses and have determine that the costs of producing the 9,800 keyboard trays needed each year are as follows: Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of equipment that manufacturers the trays Allocated general overhead As part of their negotiations, they have learned that another manufacturing company, Bell Tray, Inc., will make the keyboard trays and sell them to Spider Fish Desk Corporation for $30.00 each. If Spider Desk agreed to this contract, they could avoid the salary for the supervisor of the Keyboard Tray Department and all of the variable costs for that department, including direct labor. The equipment that is used to make the keyboard trays is very outdated and could not be used for any other purpose or sold. Spider Fish Desk allocates its general overhead (fixed costs) to all of the departments in the company. If the company enters into the contract with Bell Tray, Inc, they could avoid $2,900 of these allocated costs. As another point to consider, Spider Fish Desk could use the factory space that would be freed up to manufacture more of their most popular desks, which would increase the segment margin by $18,000 per year for those desks. Required: a. If Spider Fish Desk enters into the contract with Bell Tray, Inc. what would be the financial advantage (or disadvantage) per year to the company? Annual financial advantage (or disadvantage) would be Per Unit $9.00 $5.00 $9.90 $ 3.80 $3.20 $ 1.70 b. How would you advise the company? Should Spider Fish Desk continue to make the keyboard trays themselves or should they buy them from Bell Tray, Inc.? The company should the Keyboard trays