12.( TCO 6) Which of the following is a disadvantage of the physicalmeasure method of allocating joint costs?( Points: 5) 13.( TCO 7) Life-cycle costing is the name given to:( Points: 5) 14.( TCO 7) Each month, Haddon Company has $ 275,000 total manufacturing costs( 20 % fixed) and $ 125,000 distribution and marketing costs( 36 % fixed). Haddon ' s monthly sales are $ 500,000. The markup percentage on full cost to arrive at the target( exisitng) selling price is 15.( TCO 8) Transfer prices should be judged by whether they promote:( Points: 5) 16.( TCO 8) Division A sells soybean paste internally to Division B, which in turn, produces soybean burgers that sell for $ 5 per pound. Division A incurs costs of $ 0.75 per pound while Division B incurs additional costs of $ 2.50 per pound. Which of the following formulas correctly reflects the company ' s operating income per pound?( Points: 5) 17.( TCO 8) When companies do not want to use market prices or find it too costly, they typically use ________ prices, even though suboptimal decisions may occur.( Points: 5) 18.( TCO 9) To guide cost allocation decisions, the benefits-received criterion:( Points: 5) 19.( TCO 9) The Hassan Corporation has an Electric Mixer Division and an Electric Lamp Division. Of a $ 20,000,000 bond issuance, the Electric Mixer Division used $ 14,000,000 and the Electric Lamp Division used $ 6,000,000 for expansion. Interest costs on the bond totaled $ 1,500,000 for the year. What amount of interest costs should be allocated to the Electric Mixer Division?( Points: 5)
20.( TCO 10) The net present value method focuses on:( Points: 5) 21.( TCO 10) The Zeron Corporation wants to purchase a new machine for its factory operations at a cost of $ 950,000. The investment is expected to generate $ 350,000 in annual cash flows for a period of four years. The required rate of return is 14 %. The old machine can be sold for $ 50,000. The machine is expected to have zero value at the end of the four-year period. What is the net present value of the investment? Would the company want to purchase the new machine? Income taxes are not considered.( Points: 5)