Chapter 12 Practice Exam

Chapter 12 Practice Exam - Garrison 13e Practice Exam...

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Garrison 13e Practice Exam – Chapter 12 Print these pages. Answer each of the following questions, explaining your answers or showing your work, as appropriate, and then compare your solutions to those provided at the end of the practice exam. 1. North Star Company has recorded the following information about the results of its operations for the fourth quarter: Total Company Western Division Eastern Division Sales revenues $200,000 $ 80,000 $120,000 Variable cost of sales $ 60,000 30,000 30,000 Fixed costs: Common $100,000 25,000 75,000 Traceable $ 50,000 20,000 30,000 Based on this information, prepare a segmented income statement for the quarter and comment on the results. 2. The Southern Division of Pearle Company recorded the following operating data for the past year: Average operating assets $200,000 Stockholders’ equity 160,000 Sales 400,000 Net operating income 50,000 Residual income 26,000 Part (a) What was the division’s return on investment?
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Part (b) What was the division’s margin? Part (c) What was the division’s turnover?
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Chapter 12 Practice Exam - Garrison 13e Practice Exam...

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