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Maxim has already spent $29,100 to manufacture a hamster food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand that can be sold for $91,920. Alternatively, Maxim can process it further into a different product, Premium Green, at an additional cost of $6,150. If Maxim processes further, the Premium Green can be sold for $100,100. The incremental income to process further is:

A company pays $24,000 per period to rent a small building that has 10,900 square feet of space. This cost is allocated to the company’s three departments on the basis of the amount of the space occupied by each. Department One occupies 2,180 square feet of floor space, Department Two occupies 3,270 square feet of floor space, and Department Three occupies 5,450 square feet of floor space. If the rent is allocated based on the total square footage of the space, Department One should be charged rent expense for the period of:

Epsilon Company can produce a unit of product for the following costs: Direct material $ 8.60 Direct labor 24.60 Overhead 43.00 Total product costs per unit $ 76.20 An outside supplier offers to provide Epsilon with all the units it needs at $63.00 per unit. If Epsilon buys from the supplier, the company will still incur 40% of its overhead. Epsilon should choose to:

A company has sales of $115,000; cost of goods sold of $72,870; and total direct expenses of $8,220. The department’ contribution to overhead is:

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?