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Utopia Corporation has a Return of Investment (ROI) of 13%. One of its divisions, which currently has a 15% ROI is given the opportunity to
Utopia Corporation has a Return of Investment (ROI) of 13%. One of its divisions, which currently has a 15% ROI is given the opportunity to invest in a project. The project will reduce the division's ROI but produce $120,000 of residual income (RI). If Utopia strives for goal congruence, the investment: Multiple Choice should not be acquired as there is an opportunity cost to Utopia should not be acquired because it reduces divisional ROI should not be acquired because the division's ROI is already higher than the overall corporation's ROI should not be acquired because the division's ROI and Rl give different results should be acquired because it produces an additional $120,000 of RI for the corporation Jaffa Limited produces three products-X, Y, & Zwith the following characteristics: Selling price per unit Variable cost per unit Contribution margin per unit Machine hours per unit X $20 100% 12 60% $8 40% 5 Y $16 100% 12 75% $4 25% 3 z $20 100% 8 40% $12 60% 41 The company has only a limited number of machine-hours available each month. If demand exceeds the company's capacity, in what sequence should orders be filled if the company wants to maximize its total contribution margin? Multiple Choice Orders for X first, Z second, and Y third. Orders for Z first, X second, and Y third. Orders for Y only Orders for Z first, Y second and X third Orders for Y first, X second, and Z third
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