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12,770,000 Sales Variable costs Posts meste coital 4,320,000 $1,000 9.00 of sales of les $144,00 100.00 Management has determined that in order to upgrade the

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12,770,000 Sales Variable costs Posts meste coital 4,320,000 $1,000 9.00 of sales of les $144,00 100.00 Management has determined that in order to upgrade the competitor to Megatronka standards, an additional $180,000 of invested Capital would be needed Required: 1. Compute the current Rol of the Northeast Division and the division's Rol if the competitor is acquired 2. divisional management is being evaluated on the basis of ROI, will the Northeast Division Skely pursue acquisition of the competitor? 3- Compute me ROI of the competitor as it is now and after the wtended upgrade 3-b. Rolis used as the basis for evaluation would Megatronics Corporation likely be in favor of the acquisition of the competitor? 4. Calculate the Northeast Don's Roafter acquisition of competitor but before upgrading -a. Assume that Megatronics uses residual income to evaluate performance and desires a 12 percent minimum return on invested capital Compute the current residual income of the Northeast Division and the division's residual income the competitor is acquired S-b. If divisional management is being evaluated on the basis of residual income, wil the Northeast Division Wely pursue cosition of the competitor Complete this question by entering your answers in the tabs below. R1 Red 2 Rea SA can Red RA Reg Camput the current Rot of the northeast Division and the division's RO the competitor is acquired. Round your to 2 decimal places 1236 should beered as 123 Current RO ROKEcomotis pied Reg 2 )

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