The Chasis Division provides frames for the Tractor Division of a company. The standard unit costs for the Chasis Division are as follows:

Direct materials $ 800

Direct labor 1,500

Variable overhead 400

Fixed overhead 350

Market price per unit 4,575

What is the transfer price based on full cost plus a markup of 20 percent?

a.$3,240

b.$3,660

c.$4,575

d.$5,490

The following information pertains to the three divisions of Merrymount Company:

Division X Division Y Division Z

Sales ? ? 1,250,000

Net operating income $ 36,000 $25,000 $ 75,000

Average operating assets 300,000 ? ?

Return on investment ? 20% 15%

Margin 0.10 0.05 ?

Turnover 1.5 ? ?

Target ROI 15% 12% 10%

What is the turnover for Division Z?

a.0.150

b.2.500

c.1.500

d.6.670