The manager of Synergy Company's Stock Division projects the following for next year: Sales $195,000 Operating income 70,000 Operating assets 385,000 The manager can invest in an additional project that would require $50,000 investment in additional assets and would generate $9,000 of additional income. The company's minimum rate of return is 15%. What is the residual income for the Stock Division without the additional investment? $16,600 $6,000 $13,450 $12,250 Flying High Company manufactures model airplanes. During the month, it manufactured 10,000 airplanes. Each one used an average of 6.5 direct labor hours and an average of 1.5 sheets of aluminum. It normally manufactures 7,500 airplanes. Materials and labor standards for making the airplanes are: Direct Materials (1 sheet of aluminum @ $10.00) Direct Materials (other accessories @ $8.75) Direct Labor (6 hours @ $7.00) $10.00 8.75 42.00 Compute the standard number of sheets of aluminum allowed for a volume of 10,000 airplanes. 7,500 sheets 10,000 sheets 15,000 sheets 11,250 sheets Poor quality materials could have an unfavorable effect on which of the following variances? Labor Efficiency Variance Materials Quantity Variance A) No No B) No Yes C) Yes Yes D) Yes No Option D Option B Option A Option C