3 - 4- Materials used by Square Yard Products Inc. in producing Division 3\'s pr

Question

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4- Materials used by Square Yard Products Inc. in producing Division 3's product are currently purchased from outside suppliers at a cost of $5 per unit. However, the same materials are available from Division 6. Division 6 has unused capacity and can produce the materials needed by Division 3 at a variable cost of $3 per unit. A transfer price of $3.20 per unit is established, and 40,000 units of material are transferred, with no reduction in Division 6's current sales. How much would Division income from operations increase ?

5 - Assume that Division P has achieved income from operations of $160,150.00 using $1,041,140.00 of invested assets. If management desires a minimum rate of return of 11%, what is the residual income? Round to the nearest dollar. A_ $45,625 B_ $23 C_94,649 D_$160,150

6- Division Q for Mott Company has a rate of return on investment of 28% and an investment turnover of 1.56. What is the profit margin (round to two decimal points)?

7- The profit margin for Atlantic Division is 28% and the investment turnover is 2.8. What is the rate of return on investment for Atlantic Division?

8 - Managers of what type of decentralized units have authority and responsibility for revenues, costs, and assets invested in the unit? A _ Profit Center B_ Cost Center C_ Production Center D_ Investment Center

9 - Mason Corporation had $650,000 in invested assets, sales of $700,000, income from operations amounting to $99,000, and a desired minimum rate of return of 15%?. The residual income for Mason is ? A- $0 B- -$6,000 C- $1,500 D-$84,150

10 - Mason Corporation had $650,000 in invested assets, sales of $700,000, income from operations amounting to $99,000, and a desired minimum rate of return of 15%. The investment turnover for Mason is ?? A-6.57 B-1.08 C-.93 D-7.07

ABC Corporation has three service departments with the following costs and activity base:


ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information are as follows:

Explanation / Answer

Solution 2:

Amount of change in net income for the current year that will result from the discontinuance of Product G = -$20,000

Note: As multiple questions are posted, i have answered first question as per chegg policy, Kindly post separate question for answer of remaining questions.

Differential Analysis - Continue Product G (alt 1) or Discontinue Product G (Alt2) Particulars Continue Product G (alt 1) Discontinue Product G (alt 1) Differential effect on income (Alt 2) Amount Amount Revenue $850,000.00 $640,000.00 -$210,000.00 Costs: Varaible cost $590,000.00 $400,000.00 -$190,000.00 Fixed Cost $140,000.00 $140,000.00 $0.00 Income / (Loss) $120,000.00 $100,000.00 -$20,000.00

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