Answer the Following Questions Using the Information Below:
the Echuca

question 17

Multiple Choice

Answer the following questions using the information below:
The Echuca Electrical Corporation reported the following information for its Coaxial Cables Division:
$$\begin{array} { l r } \text { Revenues } & \$ 1000000 \\\text { Operating costs } & 600000 \\\text { Taxable income } & 200000 \\\text { Operating assets } & 500000\end{array}$$ Profit is defined as operating profit.
-What is the Coaxial Cables Division's return on investment?

• A)0.2
• B)0.4
• C)0.5
• D)0.8

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Definitions:

Quantity Variance

A variance that is computed by taking the difference between the actual quantity of the input used and the amount of the input that should have been used for the actual level of output and multiplying the result by the standard price of the input.

Standard Quantity

The expected or planned amount of materials or inputs required for the production of a unit of product, based on efficient operations.

Actual Quantity

The real amount or volume of inputs used in the production process, as opposed to the amount budgeted or planned.

Standard Cost Card

A detailed listing of the standard amounts of inputs and their costs that are required to produce one unit of a specific product.