“Rose Incorporated manufactures two types of vases, small and large. The following per-unit data are available.

Small Vase Large Vase
Sale price $60 $100
Variable costs $35 $60
Machine hours required for 1 vase 1 2

Total fixed costs are $600,000, and Rose
Incorporated can sell a maximum of 25,000 units of each type of vase annually.
Machine hour capacity is 50,000 hours per year.

a. Determine the contribution margin per
unit for each type of vase.
b. Determine the contribution margin per
machine hour for each type of vase.
c. Determine the number of units of each
style of vase that Rose Incorporated should produce to maximize operating
income.
d. What is the dollar amount of the
maximum operating income as calculated in C above?Financial Statement Analysis The
following information relates to Harris Corporation.Account Current year Prior yearNet sales (all credit) $520,125 $499,500Cost of goods sold $375,960 $353,600Gross profit $144,165 $145,900Income from operations $ 95,500 $ 79,900Interest expense $ 23,500 $ 19,500Net income $ 57,600 $ 51,600Cash $ 30,600 $ 15,900Accounts receivable, net $ 33,800 $
23,200Inventory $ 42,000 $ 30,300Prepaid expenses $2,000 $1,500Total current assets $108,400 $70,900Total long-term assets $ 62,000 $ 38,000Total current liabilities $ 46,000 $
41,600Total long-term liabilities $ 20,000 $
22,700Common stock, no par,3,000 shares, value $50/share $ 30,000 $
30,000Required:a. What is the acid-test ratio for the
current year?b. What is the inventory turnover for the
current year?c. What is days’ sales in receivables for
the current year?d. What is the book value per share of
common stock for the current year?e. What is the price-earnings ratio for
the current year?f. What is the rate of return on total
assets for the current year?g. What is the times-interest-earned
ratio for the current year?
h. What is the current ratio for the
current year?Rose Incorporated manufactures two types
of vases, small and large. The following per-unit data are available.Small Vase Large VaseSale price $60 $100Variable costs $35 $60Machine hours required for 1 vase 1 2Total fixed costs are $600,000, and Rose
Incorporated can sell a maximum of 25,000 units of each type of vase annually.
Machine hour capacity is 50,000 hours per year.a. Determine the contribution margin per
unit for each type of vase.b. Determine the contribution margin per
machine hour for each type of vase.c. Determine the number of units of each
style of vase that Rose Incorporated should produce to maximize operating
income.d. What is the dollar amount of the
maximum operating income as calculated in C above?Account Current year Prior yearNet sales (all credit) $520,125 $499,500Cost of goods sold $375,960 $353,600Gross profit $144,165 $145,900Income from operations $ 95,500 $ 79,900Interest expense $ 23,500 $ 19,500Net income $ 57,600 $ 51,600Cash $ 30,600 $ 15,900Accounts receivable, net $ 33,800 $
23,200Inventory $ 42,000 $ 30,300Prepaid expenses $2,000 $1,500Total current assets $108,400 $70,900Total long-term assets $ 62,000 $ 38,000Total current liabilities $ 46,000 $
41,600Total long-term liabilities $ 20,000 $
22,700Common stock, no par,3,000 shares, value $50/share $ 30,000 $
30,000Required:a. What is the acid-test ratio for the
current year?b. What is the inventory turnover for the
current year?c. What is days’ sales in receivables for
the current year?d. What is the book value per share of
common stock for the current year?e. What is the price-earnings ratio for
the current year?f. What is the rate of return on total
assets for the current year?g. What is the times-interest-earned
ratio for the current year?
h. What is the current ratio for the
current year?”