Keller Company is evaluating its two divisions, North Division and South Division. Data for the North Division include sales of $250,000, variable costs of $125,000, and fixed costs of $200,000, 50 percent of which are traceable to the division. Data for the South Division include sales of $300,000, variable costs of $175,000, and fixed costs of $225,000, 60 percent of which are traceable to the
division. Divisional income (or segment margin) for South Division is
A) $(100,000).
B) $(75,000).
C) $(10,000).
D) $125,000.
C
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Suppose an investment has cash inflows of R dollars at the end of each year for two years. The present value of these cash inflows using a 12% discount rate will be:
A. sometimes greater than under a 10% discount rate and sometimes less; it depends on R. B. less than under a 10% discount rate. C. greater than under a 10% discount rate. D. equal to that under a 10% discount rate.
Sam Jackson is thinking about buying a new machine that will reduce his annual labor cost by $2,000 per year. The machine will last for 4 years. The interest rate used for management decisions is 8 percent. What is the maximum amount Jackson should pay for the machine?
a. $13,466 b. $6,624 c. $18,428 d. $9,021
To create constancy of purpose for improvement of product and service, and to break down barriers between staff areas are two of W. Edwards Demming’s fourteen points of quality that comprise his approach, the quality-based management known as:
a. TQC b. ISM c. ISO d. TQM
Which of the following is not a stage of a project’s life cycle?
a. conceptualization b. planning c. execution d. cancellation