3 Wescott Company has three divisions: A, B, and C. The company has a hurdle rate of 8 percent. Selected operating data for the three divisions are as follows: 10 points Sales revenue Cost of goods sold Miscellaneous operating expenses Interest and taxes Average invested assets eBook Print References Division A $ 1,235,000 Division B $ 1,186,000 Division C $ 1,206,000 871,000 66,000 55,000 2,588,000 876,000 67,000 55,000 4,255,000 763,000 78,000 62,000 10,722,000 Wescott is considering an expansion project in the upcoming year that will cost $6.7 million and return $598,000 per year. The project would be implemented by only one of the three divisions. Required: 1. Compute the ROI for each division. 2. Compute the residual income for each division. 3. Rank the divisions according to the ROI and residual income of each. 4-a. Compute the return on investment on the proposed expansion project. 4-b. Is this an acceptable project? 5. Without any additional calculations, state whether the proposed project would increase or decrease each division's ROI. 6. Compute the new ROI and residual income for each division if the project was implemented within that division. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 5 Req 6 Compute the ROI for each division. Note: Enter your answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.) ROI Division A 96 Division B 96 Division C 96 Req 1 Req 2 > 3 2 points Skipped eBook Perfect Pet Collar Company makes custom leather pet collars. The company expects each collar to require 1.70 feet of leather and predicts leather will cost $2.90 per foot. Suppose Perfect Pet made 65 collars during February. For these 65 collars, the company actually averaged 1.90 feet of leather per collar and paid $2.40 per foot. Required: 1. Calculate the standard direct materials cost per unit. 2. Without performing any calculations, determine whether the direct materials price variance will be favorable or unfavorable. 3. Without performing any calculations, determine whether the direct materials quantity variance will be favorable or unfavorable. Complete this question by entering your answers in the tabs below. Print Req 1 Req 2 and 3 References Calculate the standard direct materials cost per unit. Note: Round your answer to 2 decimal places. Standard Direct Materials per Collar < Req 1 Req 2 and 3 > 2 3 points Skipped eBook Perfect Pet Collar Company makes custom leather pet collars. The company expects each collar to require 1.70 feet of leather and predicts leather will cost $2.90 per foot. Suppose Perfect Pet made 65 collars during February. For these 65 collars, the company actually averaged 1.90 feet of leather per collar and paid $2.40 per foot. Required: 1. Calculate the standard direct materials cost per unit. 2. Without performing any calculations, determine whether the direct materials price variance will be favorable or unfavorable. 3. Without performing any calculations, determine whether the direct materials quantity variance will be favorable or unfavorable. Complete this question by entering your answers in the tabs below. Print Req 1 Req 2 and 3 References 2. Without performing any calculations, determine whether the direct materials price variance will be favorable or unfavorable. 3. Without performing any calculations, determine whether the direct materials quantity variance will be favorable or unfavorable. 2. Direct Material Price Variance 3. Direct Material Quantity Variance < Req 1 Req 2 and 3 > Show less