1 Adams Corporatior evaluates divisional managers based on ROI. Operating results for the 2 company's Northern Division for last year are given below: 3 4 $ 5 6 Sales Variable expenses Contribution margin Fixed expenses Net operating income 27,000,000 16,200,000 10,800,000 8,805,000 1.995.000 7 8 9 10 9,500,000 Average divisional operating assets 11 | 12 The Northern Division has an opportunity to add a new product line at the beginning of the year as follows: 13 14 Average required investment Net operating income 2,500,000 400,000 15 16 15% 17 Adams Corporation's minimum acceptable rate of return 18 19 Compute the following: 20 16 15% 17 Adams Corporation's minimum acceptable rate of return 18 19 Compute the following: 20 21 Northern Division ROI for last year 22 23 Northern Division Rol if new product line is added 24 27 25 Write an IF statement to determine whether the Northern Division 26 manager will ACCEPT OF REJECT the new product line based on ROI. 28 Northern Division residual income for last year 30 Northem Division residual income if the new product line is added 32 Write an IF statement to determine whether the Northern Division manager 33 will ACCEPT or REJECT the new product line based on residual income 34 29 31 35