Quiz 11 w answers

Quiz 11 w answers - Quiz 11 Student: _ 1. Higado...

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Quiz 11 Student: ___________________________________________________________________________ 1. Higado Confectionery Corporation has a number of store locations throughout North America. In income statements segmented by store, which of the following would be considered a common fixed cost? A. store manager salaries B. store building depreciation expense C. the cost of corporate advertising aired during the Super Bowl D. all of the above 2. Which of the following will not result in an increase in return on investment (ROI), assuming other factors remain the same? A. A reduction in expenses. B. An increase in net operating income. C. An increase in operating assets. D. An increase in sales. 3. A segment of a business responsible for both revenues and expenses would be called: A. a cost center. B. an investment center. C. a profit center. D. residual income. 4. Bonniwell Corporation has two divisions: the Delta Division and the Alpha Division. The Delta Division has sales of $620,000, variable expenses of $359,600, and traceable fixed expenses of $229,200. The Alpha Division has sales of $820,000, variable expenses of $541,200, and traceable fixed expenses of $172,900. The total amount of common fixed expenses not traceable to the individual divisions is $122,000. What is the company's net operating income? A. $539,200 B. $15,100 C. $137,100 D. $417,200 5. Last year the House of Orange had sales of $826,650, net operating income of $81,000, and operating assets of $84,000 at the beginning of the year and $90,000 at the end of the year. What was the company's turnover rounded to the nearest tenth? A. 9.5 B. 10.2 C. 9.8 D. 9.2
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6. A company's average operating assets are $220,000 and its net operating income is $44,000. The company invested in a new project, increasing average assets to $250,000 and increasing its net operating income to $49,550. What is the project's residual income if the required rate of return is 20%?
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This note was uploaded on 01/13/2012 for the course IS 3020 taught by Professor Staff during the Spring '08 term at Kennesaw.

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Quiz 11 w answers - Quiz 11 Student: _ 1. Higado...

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