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# Chapter 12 - Question 1(1 point Exercise 12-2 Compute the...

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Question 1: (1 point) Exercise 12-2 Compute the Return on Investm Tundra Services Company , a division of a majo North Slope oil field in Alaska. Data concerning th Sales Net operating income Average operating assets Requirement 1: Compute the margin for Tundra Services Compan Margin Requirement 2: Compute the turnover for Tundra Services Compa Turnover Requirement 3: Compute the return on investment (ROI) for Tund ROI

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Question 2: (1 point) Exercise 12-3 Residual Income [LO3] Midlands Design Ltd. of Manchester, England, is a company specializing in developers. Last year the company had net operating income of £400,000 average operating assets for the year were £2,200,000 and its minimum req Required: Compute the company's residual income for the year. Residual income £ Question 3: (2 points)
Exercise 12-4 (Appendix 12A) Transfer Pricing Situations [LO4] In each of the cases below, assume that Division X has a product that can b to Division Y of the same company for use in its production process. evaluated based on their divisional profits. Division X: Capacity in units Number of units being sold to outside customers Selling price per unit to outside customers Variable costs per unit Fixed costs per unit (based on capacity) Division Y: Number of units needed for production Purchase price per unit now being paid to an outside supplier Requirement 1 : (a) Refer to the data in case A above. Assume that \$2 per unit in varia intracompany sales. Determine the transfer price of the selling div response.) Transfer price \$ Yes No Requirement 2 :

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Chapter 12 - Question 1(1 point Exercise 12-2 Compute the...

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