1-Determining missing items in return on investment computation

One item is omitted from each of the following computations of the return on investment:

Return on Investment		=	Profit Margin		x	Investment Turnover
26 %		=	10 %		x	(a)
(b)		=	24 %		x	0.75
21 %		=	(c)		x	1.5
10 %		=	20 %		x	(d)
(e)		=	15 %		x	1.2

Determine the missing items identified by the letters as shown above. If required, round your answers to two decimal places.

2-Materials used by the Instrument Division of Ziegler Inc. are currently purchased from outside suppliers at a cost of $273 per unit. However, the same materials are available from the Components Division. The Components Division has unused capacity and can produce the materials needed by the Instrument Division at a variable cost of $227 per unit.

Determining missing items in return on investment computation One item is omitted from each of the following computations of the return on investment: Return on Investment = Profit Margin Investment Turnover 26 % 10 % (a) (b) 24 % X 0.75 21 % (c) 1.5 10 % = 20 % (d) (e) 15 % X 1.2. Determine the missing items identified by the letters as shown above. If required, round your answers to two decimal places. (a) 2.6 (b) 18 % (c) % (d) (e) 18 % Decision on Transfer Pricing Materials used by the Instrument Division of Ziegler Inc. are currently purchased from outside suppliers at a cost of $273 per unit. However, the same materials are available from the Components Division. The Components Division has unused capacity and can produce the materials needed by the Instrument Division at a variable cost of $227 per unit. a. If a transfer price of $248 per unit is established and 38,600 units of materials are transferred, with no reduction in the Components Division's current sales, how much would Ziegler Inc.'s total operating income increase? $1 b. How much would the Instrument Division's operating income increase? $1 c. How much would the Components Division's operating income increase