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The sports equipment division of Kevin Hall Company is operated as a profit centre. Sales for the division were budgeted for 2022 at $896,000. The
The sports equipment division of Kevin Hall Company is operated as a profit centre. Sales for the division were budgeted for 2022 at $896,000. The only variable costs budgeted for the division were cost of goods sold ($442,000) and selling and administrative costs ($64,000). Fixed costs were budgeted at $102,000 for cost of goods sold, $92,000 for selling and administrative costs, and $75,000 for noncontrollable fixed costs. Actual results were as follows: Sales $864,000 Cost of goods sold Variable 416,000 Fixed 106,000 Selling and administrative costs Variable Fixed 65,000 73,000 91,000 Noncontrollable fixed costs Assume the division is an investment centre, and average operating assets were $1,000,000. What is ROI? a. 20.4% O b. 19.4% c. 18.4% O d. 21.4% Hargrow Inc. makes and sells a single product: buckets. It takes 3.00 kilograms of plastic to make one bucket. Budgeted production of buckets for the next three months is as follows: August 90,000 units, September 75,000 units, October 65,000 buckets. The company wants to maintain monthly ending inventories of plastic equal to 10% of the following month's production needs. On August 31, 50,000 kilograms of plastic were on hand. The cost of plastic is $0.50 per kilogram. How much is the ending inventory of plastic to be reported on the company's balance sheet at September 30? O a. 111,000 Ob 9,750 OC. 29,250 O d. 11,250 ABC Ltd. makes and sells picture frames. A sales and production budget for the coming period follows: January February March April May Sales 10,000 12,000 8,000 9,000 9,500 Production 11,000 9,000 8,750 8,750 9,875 Each frame requires 3.0 meters of wood to produce. ABC began the period with 2,800 meters and their target ending inventory for wood is 20% of the next months production needs. How many meters of wood should ABC purchase in the month of March? a. 25,875 O b. 26,250 O c. 26,375 O d. 29,075
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