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1

The following data are available for the Northern Division of Comet Products and the single product it makes:

Unit selling price $60
Variable cost per unit $36
Annual fixed costs $840,000
Average operating assets $4,500,000

How many units must the Northern Division sell each year to have an ROI of 16%?

A)52,000.
B)65,000.
C)240,000.
D)1,300,000.
2

The Southern Division of Schuler Enterprises recorded operating data as follows for the past year:

Sales $600,000
Net operating income 75,000
Average operating assets 300,000
Stockholders' equity 240,000
Residual income 39,000

For the past year, the margin was:

A)12.50%.
B)13.00%.
C)14.75%.
D)15.00%.
3

The Southern Division of Schuler Enterprises recorded operating data as follows for the past year:

Sales $600,000
Net operating income 75,000
Average operating assets 300,000
Stockholders' equity 240,000
Residual income 39,000

For the past year, the turnover was:

A)2.
B)4.
C)10.
D)25.
4

The Southern Division of Schuler Enterprises recorded operating data as follows for the past year:

Sales $600,000
Net operating income 75,000
Average operating assets 300,000
Stockholders' equity 240,000
Residual income 39,000

For the past year, the minimum required rate of return was:

A)11%.
B)12%.
C)13%.
D)14%.





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