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Craylon Corp

question 146

Essay

Craylon Corp. is planning the 2018 operating budget. Average operating assets of $1,800,000 will be used during the year and unit selling prices are expected to average $100 each. Variable costs of the division are budgeted at $500,000, while fixed costs are set at $300,000. The company's required rate of return is 18%.
Required:
a.Compute the sales volume necessary to achieve a 20% ROI.
b.The division manager receives a bonus of 50% of residual income. What is his anticipated bonus for 2015, assuming he achieves the 20% ROI from part (a)?

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Definitions:

Medical Model

An approach to health which treats mental and physical illnesses primarily through the use of drugs, surgery, or other medical interventions.

Western Cultures

Western cultures refer to societies primarily located in the Western part of the world, often characterized by traditions and systems of thought that have origins in Ancient Greece, Rome, and through subsequent European influence.

Psychological Perspective

An approach or viewpoint in psychology that emphasizes particular aspects of human behavior and mental processes.

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a standardized text used by healthcare professionals to diagnose mental disorders.

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