The Millard Division's operating data for the past two years are provided below: $\begin{array}{l} \begin{array} { | l | r | r | } \hline & \text { Year 1 } & \text { Year 2 } \\ \hline \text { Return on Investment } & 12 \% & 36 \% \\ \hline \text { Shareholders' Equity } & \$ 800,000 & \$ 500,000 \\ \hline \text { Operating Income } & ? & \$ 360,000 \\ \hline \text { Turnover } & ? & 3 \\ \hline \text { Margin } & ? & ? \\ \hline \text { Sales } & \$ 3,200,000 & ? \\ \hline \end{array}\\ \text { Millard Division's margin in Year } 2 \text { was } 150 \% \text { of the margin in Year } 1 . \end{array}$ -What were the sales for Year 2?

A) $1,200,000. B) $3,000,000. C) $3,200,000. D) $3,333,333. A) $1,200,000. B) $3,000,000. C) $3,200,000. D) $3,333,333.

$\begin{array}{l} \text { Eade Company's quality cost report is to be based on the following data: }\\ \begin{array} { | l | r | } \hline \text { Systems development } & \$ 32,000 \\ \hline \text { Final product testing and inspection } & \$ 13,000 \\ \hline \text { Quality data gathering, analysis, and reporting } & \$ 11,000 \\ \hline \text { Net cost of scrap } & \$ 62,000 \\ \hline \text { Returns arising from quality problems } & \$ 59,000 \\ \hline \text { Amortization of test equipment } & \$ 57,000 \\ \hline \text { Rework labour and overhead } & \$ 18,000 \\ \hline \text { Test and inspection of incoming materials } & \$ 40,000 \\ \hline \text { Product recalls } & \$ 36,000 \\ \hline \end{array} \end{array}$ - What will be the total prevention cost appearing on the quality cost report?

A) $43,000. B) $45,000. C) $47,000. D) $51,000. A) $43,000. B) $45,000. C) $47,000. D) $51,000.

(Multiple Choice)

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(32)

(Multiple Choice)

4.8/5

(33)

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