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Chang Industries has 2,000 defective units of product that already cost $14 each to produce. A salvage company will purchase the defective units as is for $5 each. Chang’s production manager reports that the defects can be corrected for $6 per unit, enabling them to be sold at their regular market price of $21. The $14 per unit is a:

The following present value factors are provided for use in this problem. Periods Present Value of $1 at 8% Present Value of an Annuity of $1 at 8% 1 0.9259 0.9259 2 0.8573 1.7833 3 0.7938 2.5771 4 0.7350 3.3121 Xavier Company wants to purchase an asset for $36,300 with a four-year life and a $1,200 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $11,300 in each of the four years. What is the machine’s net present value (round to the nearest whole dollar)?

A retailer reports the following for its geographic divisions for the year. The profit margin for its Europe division is: Americas Europe China Income $ 668,800 $ 218,500 $ 142,500 Sales 2,090,000 950,000 570,000

Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two operating departments using different allocation bases. The following information is available for the current period: Office Expenses Total Allocation Basis Salaries $ 42,000 Number of employees Depreciation 22,000 Cost of goods sold Advertising 45,000 Percentage of total sales Department Number of employees Sales Cost of goods sold Drilling 1,200 $ 340,000 $ 95,000 Grinding 1,800 510,000 155,000 Total 3,000 $ 850,000 $ 250,000 The amount of salaries that should be allocated to Drilling for the current period is:

Dartford Company reported the following financial data for one of its divisions for the year; average investment center total assets of $4,100,000; investment center income $700,000; a target income of 12% of average invested assets. The residual income for the division is:

Coffer Company is analyzing two potential investments. Project X Project Y Cost of machine $ 75,900 $ 59,000 Net cash flow: Year 1 30,000 2,400 Year 2 30,000 27,000 Year 3 30,000 27,000 Year 4 0 13,000 If the company is using the payback period method, and it requires a payback period of three years or less, which project(s) should be selected?

Holo Company reported the following financial numbers for one of its divisions for the year; average assets of $6,700,000; sales of $8,075,000; cost of goods sold of $4,125,000; and operating expenses of $1,507,000. Compute the division’s return on investment:

Chang Industries has 2,300 defective units of product that already cost $20 each to produce. A salvage company will purchase the defective units as is for $8 each. Chang’s production manager reports that the defects can be corrected for $12 per unit, enabling them to be sold at their regular market price of $24. The $20 per unit is a:

The Tires division of Car Company makes tires for use in its Assembly division. The Tires division incurs variable costs of $255 per set of tires and has the capacity to make 1,050,000 sets of tires per year. The market price for tires is $425 per set. The Tires division incurs total fixed costs of $6,050,000 per year. If the Tires division is operating at full capacity, what transfer price should be used on the transfers between the Tires and Assembly divisions?

During the newborn assessment of an infant with clubfoot, the parents ask the nurse how clubfoot is treated. Which of the following treatments would the nurse discuss with the parents?