Magenta Company has two divisions that produce two different…

Magenta Company has two divisions that produce two different products. Following is information pertaining to its two divisions for the month of June: ​ Division Gold Division Silver Variable selling and administrative expenses $  30,000 $  20,000 Direct fixed manufacturing expenses   12,000     9,000 Sales 150,000 120,000 Direct fixed selling and administrative expenses   20,000   15,000 Variable manufacturing expenses   60,000   50,000 ​ Common expenses are $8,000 for the month of June. Compute the segment margin for Division Silver.

Lorillard Corporation has the following information for Apri…

Lorillard Corporation has the following information for April, May, and June of the current year:     April May June Units produced 12,500 12,500 12,500 Units sold 8,750 10,625 13,125         Production costs per unit (based on 12,500 units) are as follows:         Direct materials   $15.00   Direct labor    10.00   Variable factory overhead    7.50   Fixed factory overhead    5.00   Variable selling and admin. expenses   12.50   Fixed selling and admin. expenses    5.00   ​ There were no beginning inventories for April of the current year, and all units were sold for $50. Costs are stable over the three months. What is the April ending inventory for Lorillard Corporation using the variable-costing method?

Davidson, Inc., is considering the purchase of production eq…

Davidson, Inc., is considering the purchase of production equipment that costs $300,000. The equipment is expected to generate an annual cash flow of $100,000 and have a useful life of five years with no salvage value. The firm’s cost of capital is 14%. The company uses the straight-line method of depreciation with no mid-year convention. Ignore income taxes. The payback period in years (round to two decimal places) for the project is