Selected operating data for two divisions of Outback Brewing, Ltd.. of Australia are given below: Division Queensland New South wales Sales 3; 991,999 $ 2,439,999 Average operating assets $ 539,999 $ 629,099 Net operating income $ 54,969 $ 74,499 Property, plant, and equipment (net) $ 248,999 $ 198,999 Required: 1. Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. 2. Which divisional manager seems to be doing the betterjob? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Queensland division New South Wales division Juniper Design Limited of Manchester, England. is a company specializing in providing design services to residential developers. Last year the company had net operating income of $480,000 on sales of $1,600.000. The company's average operating assets for the year were $1,800,000 and its minimum required rate of return was 15%. Required: Compute the company's residual income for the year. _:l Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all ofthe necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $35 per unit. To evaluate this offer, Troy Engines. Limited, has gathered the following information relating to its own cost of producing the carburetor internally: 17,880 Units Per Unit per Year Direct materials $ 17 $ 289,888 Direct labor 8 136,888 Variable manufacturing overhead 4 63,888 Fixed manufacturing overhead, traceable 6* 182,888 Fixed manufacturing overhead, allocated 9 153,888 Total cost $ 44 $ 7431899 *One-third supervisory salaries: two-thirds depreciation of special equipment {no resale value). Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 17,000 carburetors from the outside supplier? 2. Should the outside supplier's offer be accepted? 3. Suppose that ifthe carburetors were purchased, Troy Engines, Limited, could use the freed capacity to launch a new product. The segment margin of the new product would be $170,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 17.000 carburetors from the outside supplier? 4. Given the new assumption in requirement 3. should the outside supplier's offer be accepted? Required 1 Required 2 Required 3 Required 4 Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 17,000 carburetors from the outside supplier? %l_l Required 1 Required 2 Required 3 Required 4 Should the outside supplier's offer be accepted? Required 1 Required 2 Required 3 Required 4 Suppose that if the carburetors were purchased, Troy Engines, Limited, could use the freed capacity to launch a new product. The segment margin of the new product would be $170,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 17,000 carburetors from the outside supplier?Imperial Jewelers manufactures and sells a gold bracelet for $403.00. The company's accounting system says that the unit product cost for this bracelet is $271.00 as shown below: Direct materials 1% 148 Direct labor 85 Manufacturing overhead 38 Unit product cost 3 271 The members ofa wedding party have approached Imperial Jewelers about buying 26 ofthese gold bracelets for the discounted price of $363.00 each. The members of the wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $5. Imperial Jewelers would also have to buy a special tool for $458 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order opportunity. imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how muchjewelry is produced in any given period. However, $6.00 ofthe overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ability to produce and selljeweiry to other customers. Furthermore, the company could fulfill the wedding party's order using its existing manufacturing capacity. Required: 1. What is the financial advantage (disadvantage) of accepting the special order from the wedding party? 2. Should the company accept the special order? Required 1 Required 2 What is the financial advantage (disadvantage) of accepting the special order from the wedding party? %i_l Wexpro, Incorporated. produces several products from processing 1 ton ofclypton, a rare mineral. Material and processing costs total $56,000 per ton, one-fourth of which is allocated to product X15. Eight thousand six hundred units of product X15 are produced from each ton of clypton. The units can either be sold at the split-oft point for $15 each, or processed further at a total cost of $6.900 and then sold for $21 each. Required: 1. What is the financial advantage (disadvantage) of further processing product X15? 2. Should product X15 be processed further or sold at the split-oft point? 'i. } ' 2. Product X15 should be