Last year Mason Inc. had a total assets turnover of 1.33 and an equity multiplier of 1.75. Its sales were $195,000 and its net income was $10,549. The CFO believes that the company could have operated more efficiently, lowered its costs, and increased its net income by $5,250 without changing its sales, assets, or capital structure. Had it cut costs and increased its net income in this amount, by how much would the ROE have changed?
A. 5.66%
B. 5.95%
C. 6.27%
D. 6.58%
E. 6.91%
Answer: C
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Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the current period: Office ExpensesTotal Allocation BasisSalaries$30,000 Number of employeesDepreciation 20,000 Cost of goods soldAdvertising 40,000 Net sales ItemDrilling Grinding TotalNumber of employees 1,000 1,500 2,500 Net sales$325,000 $475,000 $800,000 Cost of goods sold$75,000 $125,000 $200,000 The amount of salaries that should be allocated to Drilling for the current period is:
A. $10,000. B. $12,000. C. $15,000. D. $18,000. E. $30,000.
What does the American Rule for successive assignments provide?
A) The last assignment in time prevails, regardless of notice. B) The first notified assignment prevails. C) The first assignment in time prevails, regardless of notice. D) Only notified assignments prevail.
Giga Company uses a weighted average process cost system. The department started and finished 129,000 units during the current period. The ending inventory consists of 60,000 units that are 75% complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $262,500 and overhead costs of $126,000.(a) Compute the equivalent cost per unit for direct labor.(b) Compute the equivalent cost per unit for overhead.
What will be an ideal response?
Primary sources include case law, statutes, constitutions, and dictionaries
a. True b. False