| 4 |
The gross margin for April is:
A company has provided the following data:
5. If the sales volume decreases by 25%, the variable cost per unit increases by 15%, and all other factors remain the same, net operating income will:
6. Balonek Inc.’s contribution margin ratio is 57% and its fixed monthly expenses are $41,000. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company’s net operating income in a month when sales are $112,000?
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
7. What is the absorption costing unit product cost for the month?
8. Veltri Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.77 direct labor-hours. The direct labor rate is $11.20 per direct labor-hour. The production budget calls for producing 7,100 units in October and 6,900 units in November. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 5,480 hours in total each month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months?
9. A company’s current net operating income is $16,800 and its average operating assets are $80,000. The company’s required rate of return is 18%. A new project being considered would require an investment of $15,000 and would generate annual net operating income of $3,000. What is the residual income of the new project?
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Beall Industries is a division of a major corporation. Last year the division had total sales of $20,160,000, net operating income of $1,592,640, and average operating assets of $8,000,000. |
| 10. |
The division’s margin is closest to:
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| 11. |
The division’s turnover is closest to:
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| 12. |
The division’s return on investment (ROI) is closest to:
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