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Which of the following performance measures will increase if inventory decreases and all else remains the same? A) B) C) D) Return on Investment Yes
Which of the following performance measures will increase if inventory decreases and all else remains the same? A) B) C) D) Return on Investment Yes No Yes No Residual Income Yes Yes No No Multiple Choice Choice D Choice Choice B Choice A Gallerani Corporation has received a request for a special order of 4,500 units of product A90 for $27.10 each. Product A90's unit product cost is $26.80, determined as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $ 2.65 7.95 7.05 9.15 $26.80 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product A90 that would increase the variable costs by $3.50 per unit and that would require an investment of $24.000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be: Multiple Choice O $1,350 O $2.775 $138.400) S/61,650) Dacker Products is a division of a major corporation. The following data are for the most recent year of operations: Sales Net operating income Average operating assets The company's minimum required rate of return The division's margin used to compute ROI is closest to: $ 36,680,000 $ 2,908,960 $ 8,200,000 14% Multiple Choice 22.4% 7.9% 30.3% 35.5%
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