1-Compute return on investment (ROI) and show how it affect ROI.

2- Compute residual income.

Return on Investment (ROI) and Residual Income Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Calibri A. Alignment Number Conditional Format as Cel Cells Editing Formatting Table Styles Paste B I U Clipboard Font Styles F24 Adams Corporation evaluates divisional managers based on ROI. operating results for the 2 company's Northern Division for last year are given below: Sales 27,000,000 Variable expenses 16,200,000 Contribution margin 10,800,000 Fixed expenses 8,805,000 Net operating income 1,995,000 Average divisional operating assets 9 500,000 10 11 12 The Northern Division has an opportunity to add a new product line as follows: 13 Required investment 2,500,000 Net operating income 400,000 15 16 17 Adams Corporation's minimum acceptable rate of return 15% 18 19 Compute the following: 20 21 Northern Division ROI for last year 21.00% 22 23 Northern Division ROI if new product line is added 24 25 Write an IF statement to determine whether the Northern Division 26 manager will ACCEPT or REJECT the new product line based on ROI 27 28 Northern Division residual income for last year 29 30 Northern Division residual income if the new product line is added 31 32 Write an IF statement to determine whether the Northern Division manager Sheet1 READY Sign In