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The Anderson Company has sales of $4,500,000. It also has invested assets of $2,000,000 and operating expenses of $3,600,000. The company has established a minimum
The Anderson Company has sales of $4,500,000. It also has invested assets of $2,000,000 and operating expenses of $3,600,000. The company has established a minimum rate of return of 7%. What is Anderson Company's profit margin? a.20% b.80% c.44.4% d.18% What is Anderson company's investment turnover? a. 1.80 b. 2.25 c. 1.25 d. 1.4 what is anderson company's rate of return on investment? a. 56% b. 20% c. 45% d. 25% what is anderson companys residual income? a. 252000 b. 900000 c. 1400000 d. 760000 4. The Ukulele Company's radio division currently is purchasing transistors from the Xiang Co for $3.50 each. The total number of transistors needed is 8000 per month. Ukelele Company's electronics division can produce the transistors for a cost of $4.00 each and they have plenty of capacity to manufacture the units. The $4 is made up of $3 in variable costs and $1 in allocated costs. what should be the range of a possible transfer price? a. no transfer should take place b. $3.51 to $3.99 c. $3.01 to $3.99 d. $3.01 to $3.49 what wuld be the total savings (or additional cost) if the transfer were to take place? a. $4,000 saving b. $4,000 in additional cost c. $8000 saving d. $8000 in additional cost
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