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Paul is the manager of Division 1. Division 1 has current operating assets of $10,000,000 with a return of 16%. The companys target is 12%.

Paul is the manager of Division 1. Division 1 has current operating assets of $10,000,000 with a return of 16%. The companys target is 12%. Because Paul has done such a good job managing Division 1, Pauls boss has asked him to accept a new investment project of $3,000,000 that has a return of 14%. Should Paul accept the new investment? A. Yes, because residual income will increase by $60,000 b. No, because residual income will increase by $60,000 c. Yes, because residual income will increase by $40,000 d. No, because residual income will decrease by $40,000 e. None of the above 10. Major Manufacturing is currently working on two jobs that it began during the year. The job order cost sheets for Job 101 and Job 102 for 2006 showed the following information: Job #101 Job #102 Direct Materials $10,000 $15,000 Direct Labor $25,000 $30,000 Direct Labor Hours 2,000 hrs 3,000 hrs The company established a predetermined overhead rate of $4 per direct labor hour at the beginning of the year

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