Joyner Pickled Pepper Company produces pickled jalapeno pepper relish. Selected results from the most current year were as follows: Sales revenue $3,375,000Operating income $540,000Average total assets $1,687,500Production manager Veronica Brockman is investigating the purchase of a new brining station that will increase the plant's production capacity. Based on her research, Veronica thinks the station would cost $762,500 and would increase sales revenue by $300,000 and operating profit by $66,375.Required:a) Calculate Joyner's current margin, asset turnover, and return on investment. b) Calculate Joyner's margin, asset turnover, and return on investment assuming the company purchases the new brining station. c) Assume Veronica Joyner's annual bonus is based on the company's return on investment. Will Veronica support the purchase of the new brining station? Why or why not?

Exercise 6-2 variable costing income statement; explanation of difference in net operating income [lo6-2] ida sidha karya company is a family-owned company located on the island of bali in indonesia. the company produces a handcrafted balinese musical instrument called a gamelan that is similar to a xylophone. the gamelans are sold for $970. selected data for the company’s operations last year follow: units in beginning inventory 0 units produced 200 units sold 180 units in ending inventory 20 variable costs per unit: direct materials $ 130 direct labor $ 300 variable manufacturing overhead $ 30 variable selling and administrative $ 15 fixed costs: fixed manufacturing overhead $ 63,000 fixed selling and administrative $ 25,000 the absorption costing income statement prepared by the company’s accountant for last year appears below: sales $ 174,600 cost of goods sold 139,500 gross margin 35,100 selling and administrative expense 27,700 net operating income $ 7,400 required: 1. under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. prepare an income statement for last year using variable costing.