( c ) Compute the amount of over / under applied manufacturing overhead . Points Received : 25 of 25 Page : 1 2 3 4 1 . Question : ( TCO 9 ) An investment of $ 185,575 is expected to generate returns of $ 65,000 per year for each of the next four years . What is the investment ' s internal rate of return ? Points Received : 25 of 25 2 . Question : ( TCO 4 ) Legal Docs Inc is a legal services firm that files incorporation papers for small businesses . They charge $ 1,000 per application . This year ' s income statement shows the following :
Sales $ 1,295,000 Variable Expenses $ 1,023,000 Contribution margin $ 272,000 Fixed costs $ 250,000 Profit $ 22,000
Required : ( a ) Compute the break-even point in units . ( b ) Compute the contribution margin ratio . ( c ) Compute the current margin of safety . ( d ) How many applications must the company sell to make a profit of $ 350,000 ? Points Received : 25 of 25 3 . Question : ( TCO 5 ) The following data has been taken from Air-Tite company in its first year of business .