The following data refer to Clear Panes, a division of Global Corporation. Clear Panes makes and sells residential windows that sell for $150 each. Clear Panes expects sales of 150,000 units in 2017. Clear Panes’ annual fixed costs are $2,750,000 and their variable cost is $90 per window. Global evaluates Clear Panes based on residual income. The total investment attributed to Clear Panes is $12 million and the required rate of return on investment is 16%. Ignore taxes and depreciation expense. Answer each of the following parts independently, unless otherwise stated. Q. Clear Panes receives an external special order for 10,000 units at $120 each. If the order is accepted, Clear Panes will have to incur incremental fixed costs of $250,000 and invest an additional $450,000 in various assets. What is the effect on Clear Panes’s residual income of accepting the order?

Finch Modems has excess production capacity and is considering the possibility of making and selling paging equipment. The following estimates are based on a production and sales volume of 1,600 pagers. Unit-level manufacturing costs are expected to be $26. Sales commissions will be established at $1.60 per unit. The current facility- level costs, including depreciation on manufacturing equipment ($66,000), rent on the manufacturing facility ($56,000), depreciation on the administrative equipment ($13,800), and other fixed administrative expenses ($74,950), will not be affected by the production of the pagers. The chief accountant has decided to allocate the facility-level costs to the existing product (modems) and to the new product (pagers) on the basis of the number of units of product made (i.e., 5,600 modems and 1,600 pagers). Required a. Determine the per-unit cost of making and selling 1,600 pagers. (Do not round intermediate calculations. Round your answer to 3 decimal places.)…

Posters.com is a small Internet retailer of high-quality posters. The company has $810,000 in operating assets and fixed expenses of $162,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $4,600,000 per year. The company’s contribution margin ratio is 10%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 10 cents.    Required:   Complete the following table showing the relation between sales and return on investment (ROI).   What happens to the company’s return on investment (ROI) as sales increase? req 1  Complete the following table showing the relation between sales and return on investment (ROI). (Round your percentage answers to 2 decimal places.)         Sales Net Operating Income Average Operating Assets ROI $4,100,000 $248,000 $810,000   % $4,200,000   $810,000   % $4,300,000   $810,000   % $4,400,000…

Drake Company produces a single product. Last year's income statement is as follows:Sales (23,000 units) $1,384,600Less: Variable costs 938,400 Contribution margin $ 446,200Less: Fixed costs 258,500 Operating income $ 187,700 3. Suppose that Drake Company is considering an investment in new technology that willincrease fixed costs by $227,800 per year, but will lower variable costs to 48 percent of sales.Units sold will remain unchanged. a) Prepare a budgeted income statement assuming Drakemakes this investment. (Round all amounts to the nearest dollar.) b) What is the new breakeven point in units, assuming the investment is made? (In your computations, round the unitcontribution margin to the nearest cent. Round your final answer to the nearest whole unit.)