Acme Company has two divisions, North Division and South Div…

Acme Company has two divisions, North Division and South Division. In Year 6, the South Division reports a return on investment of 14% and sales of $750,000. In Year 7, the South Division reports a return on investment of 18%, operating income of $92,600, and a turnover of 1.20. The South Division’s margin in Year 7 is 80% of its margin in Year 6. What is the South Division’s operating income in Year 6?

Acme Company manufactures widgets and sells them for $110 pe…

Acme Company manufactures widgets and sells them for $110 per unit. Acme’s variable manufacturing costs are $28 per unit and its total fixed manufacturing overhead costs are $630,000 per year. During its first year of operations, Acme produced 3,500 units and its operating income is $59,200 using absorption costing and $34,000 using variable costing. How many units did Acme sell in its first year of operations?