The estimated overhead for the 'machine set-ups' cost pool, is $180,000. The machines in the pool produce three products: X (requiring 300 set-ups); Y (requiring 200 set-ups) and Z (requiring 500 set-ups). The amount of machine set-up costs that should be allocated to product Y is:

a.

$36,000

b.

$90,000

c.

$54,000

d.

$180,000

If the business produced 5,000,000 units, the variable cost per unit is $5.05, the selling price per unit is $15, and the total fixed cost is $6,400,000. The contribution margin ratio is closest to?

a.

57.8%

b.

91.46%

c.

33.67%

d.

66%

Jimmy's Tacos is considering investing $35,000 in a new 'pop-up' shop beside a popular Melbourne park. Jimmy estimates the net cash inflow will increase by $14,000 each year for the next 5 years. The payback period for the new taco shop is:

a.

2 years.

b.

2.5 years.

c.

3 years.

d.

3.5 years.

If profit after tax is $600,000, taxation is $280,000, the required rate of return is 15%, and the investment is $2,000,000, the residual income calculation is:

a.

$300,000

b.

15%

c.

44%

d.

$580,000