Calculate the spread between the return on investment and the required rate of return for the Consumer Products Division .
Question 13 ( RMCB-0001 )
A company is considering exchanging an old asset for a new asset . Ignoring income tax considerations , which of the following is economically relevant to the decision ?
Question 14 ( PLAN-0105 )
Carter Co . paid $ 1,000,000 for land three years ago . Carter estimates it can sell the land for $ 1,200,000 , net of selling costs . If the land is not sold , Carter plans to develop the land at a cost of $ 1,500,000 . Carter estimates net cash flow from the development in the first year of operations would be $ 500,000 . What is Carter ' s opportunity cost of the development ?
Question 15 ( PERM-0012 ) In the cost of quality , liability claims are examples of Question 16 ( PERM-0019 )
The following selected data is for the Consumer Products Division of Gerriod Corp .
Sales Average invested capital ( total assets ) Net operating profit Cost of capital Calculate the asset turnover ratio for the Consumer Products Division . Question 17 ( PLAN-0106 )
A company that produces 10,000 units has fixed costs of $ 300,000 , variable costs of $ 50 per unit , and a sales price of $ 85 per unit . After