Question 1 - Last year the Uptown Division of Gorcen Enterprises had sales of $464,100 and a net operating income of $37,570. The average operating assets at Uptown last year amounted to $221,000.
Last year at Uptown the return on investment was: (Do not round intermediate calculations.)
5%
9%
17%
48%
Question 2 - Gaal Industries is a division of a major corporation. Last year the division had total sales of $23,510,300, net operating income of $2,562,623, and average operating assets of $7,018,000. The company's minimum required rate of return is 22%.
Required:
A. What is the division's margin? (Round your answer to 2 decimal places.)
B. What is the division's turnover? (Round your answer to 2 decimal places.)
C. What is the division's return on investment (ROI)? (Round your answer to 2 decimal places.)
Question 3 - Blaster, Inc., manufactures portable radios. Each radio requires 3 units of Part XBEZ52, which has a standard cost of $2.00 per unit. During May, the company purchased 22,540 units of the part for a total of $46,207. Also during May, the company manufactured 5,380 radios, using 18,540 units of part XBEZ52. The direct materials purchases variance is computed when the materials are purchased.
During May, the materials quantity variance for part XBEZ52 was:
$4,800 U
$4,800 F
$10,080 F
$10,080 U