Question: Solve the following (Problem is for questions 12 - 15) Alexi Division of Nice Company makes and sells only one product. Annual data on Alexi

Solve the following

(Problem is for questions 12 - 15) Alexi Division of Nice Company 

(Problem is for questions 12 - 15) Alexi Division of Nice Company makes and sells only one product. Annual data on Alexi Division's single products follows: Unit selling price Unit variable cost Total fixed cost Average operating assets Minimum required rate of return P50 30 200,000 750,000 12% 12. If Alexi sells 15,000 units per year, how much is the residual income? 13. If Alexi sells 16,000 units per year, what is the return on investment (ROI)? 14. Suppose the manager of Alexi division desires a return on investment of 22%. In order to achieve this goal, how many units per year Alexi division must sell? 15. Suppose the manager of Alexi division desires an annual residual income of P45,000. In order to achieve this, how many units Alexi division should sell?

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PART 12 Residual income is given by deducting the charge for the cost of the capital invested in the division from the divisions operating income Oper... View full answer

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