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Division 1. sales. $180,000; operating income. $67,500; operating assets. $450,000. Division 2. sales. $110,000: operating income. $58,300. operating assets. $550,000. ABC Company expects a minimum return of 10% should be earned from all investments Required: a. Prepare ABC Company's ROI analysis using the DuPont model for each division. (Round Turnover rate answers to one decimal place. Round Margin and ROI answers to the nearest whole percentage.) Answer is complete and correct. Division 1 Division 2 S S DuPont Performance Analysis: Revenues Operating Income Operating Assets Margin Turnover ROI $ 180,000 67,500 450,000 38 % 0.4 turns 15 % IS 110,000 IS 58,300 s 650.000 53% 0.2 turns 11% b. Calculate each division's residual income. Answer is not complete. Division 1 Division 2 Resdual Income Acme Company's production budget for August is 19,300 units and includes the following component unit costs: direct materials. $9.0: direct labor. $118: variable overhead. $5.8. Budgeted fixed overhead is $50,000. Actual production in August was 21,870 units. Actual unit component costs incurred during August include direct materials. $10.00: direct labor, $11.20: variable overhead, $7.00. Actual fixed overhead was $53,300. The standard fixed overhead application rate per unit consists of $24 per machine hour and each unit is allowed a standard of 1 hour of machine time. Required: Calculate the fixed overhead budget variance and the fixed overhead volume variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero variance).) 3.3000 Fixed overhead budget variance Foxed overhead volume variance

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