Assignment title: Information
Milwaukee Metallurgy Corporation (MMC) has two divisions. The Fabrication Division transfers
partially completed components to the Assembly Division at a predetermined transfer price. The
Fabrication Division's standard variable production cost per unit is $475. The division has no excess
capacity, and it could sell all of its components to outside buyers at $620 per unit in a perfectly
competitive market. Question #1 1. value: 10.00 points Required information Required: 1.
Determine a transfer price for MMC using the general rule. Transfer price sheet is drawn here
References eBook & Resources ExerciseDifficulty: EasyLearning Objective: 13-06 Use the general
economic rule to set an optimal transfer price. Check my work Question #2 2. value: 10.00 points
Required information 2. What would be the transfer price if the Fabrication Division had excess
capacity? [The following information applies to the questions displayed below.] The following
data pertain to British Isles Aggregates Company, a producer of sand, gravel, and cement, for the
year just ended. Sales revenue £ 6,050,000 Cost of goods sold 2,947,000 Operating
expenses 2,921,500 Average invested capital 3,025,000 £ denotes the British pound sterling,
the national monetary unit of the United Kingdom. Although the euro is used in most European
markets, the U.K. continues to use pounds sterling for its national currency. Question #3 3. value:
10.00 points Required information Required: 1. Compute the company's sales margin, capital
turnover, and ROI. Sales margin % Capital turnover ROI % sheet is drawn here References
eBook & Resources ExerciseLearning Objective: 13-02 Compute an investment centers return on
investment (ROI), residual income (RI), and economic value added (EVA). Difficulty: EasyLearning
Objective: 13-03 Explain how a manager can improve ROI by increasing either the sales margin or
capital turnover. Check my work Question #4 4. value: 10.00 points Required information 2. If the
sales and average invested capital remain the same during the next year, to what level would total
expenses have to be reduced in order to improve the firm's ROI to 10 percent? Total expenses
must be reduced to sheet is drawn here References eBook & Resources ExerciseLearning Objective:
13-02 Compute an investment centers return on investment (ROI), residual income (RI), and
economic value added (EVA). Difficulty: EasyLearning Objective: 13-03 Explain how a manager can
improve ROI by increasing either the sales margin or capital turnover. Check my work Question #5
5. value: 10.00 points Required information 3-a. Assuming that the expenses and cost of goods sold
are reduced in order to improve the firm''s ROI to 10 percent, compute the firm''s new sales margin.
(Round your "Percentage" answer to 2 decimal places. (i.e., .1234 should be entered as 12.34))
New sales margin % sheet is drawn here 3-b. Show how the new sales margin and the old
capital turnover together result in a new ROI of 10 percent. (Round your "Percentage" answer to 2
decimal places. (i.e., .1234 should be entered as 12.34))