Yewston Hotel bases its budgets on guest-days. The hotel's static budget for April appears below:

Budgeted number of guest-days	2,400
Budgeted variable costs:
Supplies (@$2.10 per guest-day)	$5,040
Laundry (@$8.10 per guest-day)	19,440
Total variable cost	24,480
Budgeted fixed costs:
Wages and salaries	7,440
Occupancy costs	19,200
Total fixed cost	26,640
Total cost	$51,120

The total variable cost at the activity level of 3,350 guest-days per month should be:

$64,320

$34,170

$24,480

$31,920

Vera Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 28,000 customers, but actually served 27,800 customers. The company has provided the following data concerning the formulas it uses in its budgeting:

	Fixed element per month			Variable element per customer
Revenue		-		$	6.60
Wages and salaries	$	35,800		$	2.70
Supplies	$	0		$	1.00
Insurance	$	13,000		$	0.00
Miscellaneous	$	7,500		$	0.60

Required:

Prepare the company's flexible budget for September based on the actual level of activity for the month. (Input all amounts as positive values.)

Vera Corporation Flexible Budget For the Month Ended September 30

Revenue

$

Expenses:

Wages and salaries

Supplies

Insurance

Miscellaneous

Total expense

Net operating income

$

The following data pertain to the Whalen Division of Northern Industries.

	Year 1	Year 2
Sales	$312,000	$624,000
Stockholders' equity	$39,200	$440,000
Average operating assets	?	?
Turnover	6.0	1.2
Return on investment	?	10.4%
Minimum required rate of return	?	8.00%
Residual income	$16,800	?

The margin at Whalen was exactly the same in Year 2 as it was in Year 1.

The return on investment in Year 1 was: (Round your intermediate calculations and final answer to 2 decimal places.)

52.02%

1.60%

40.00%

2.08%