4 Exercise 22-9 (Algo) Return on investment analysis LO A1 10 points Hint Print References A growing chain is trying to decide which store location to open. The first location (A) requires a $500,000 investment in average assets and is expected to yield annual income of $85,000. The second location (B) requires a $200,000 investment in average ass and is expected to yield annual income of $44,000. (1) Compute the expected return on investment for each location. (2) Using return on investment, which location (A or B) should the company open? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the expected return on investment for each location. Mc Location A Location B Return on Investment Numerator Denominator = ROI 4 10 points Exercise 22-9 (Algo) Return on investment analysis LO A1 Book A growing chain is trying to decide which store location to open. The first location (A) requires a $500,000 investment in average assets and is expected to yield annual income of $85,000. The second location (B) requires a $200,000 investment in average assets and is expected to yield annual income of $44,000. (1) Compute the expected return on investment for each location. (2) Using return on investment, which location (A or B) should the company open? Complete this question by entering your answers in the tabs below. Hint Print Required 1 References Required 2 Using return on investment, which location (A or B) should the company open? Using return on investment, which location (A or B) should the company open? < Required 1 Required 2 > Exercise 22-8 (Algo) Departmental income statement and contribution to overhead LO P3 The Ski department reports sales of $620,000 and cost of goods sold of $434,000. Its expenses follow. Direct expenses Salaries Depreciation $ 116,000 Rent 44,800 Indirect expenses Service department expenses $ 15,000 office $ 29,000 1. For the Ski department only, prepare a departmental income statement. 2. & 3. For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Ski department be eliminated? Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 For the Ski department only, prepare a departmental income statement. Departmental Income Statement For Year Ended December 31 Ski Department Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 For the Ski department only, prepare a departmental income statement. Departmental Income Statement For Year Ended December 31 Expenses Ski Department Total expenses $ 0 Rog Req 2 and 3> es Req 1 Req 2 and 3 For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Ski department be eliminated? Departmental Contribution to Overhead For Year Ended December 31 Total direct expenses Departmental contribution to overhead Should the Ski department be eliminated? Ski Department 0 0 $ < Req 1 Req 2 and 3