6 Word Fili, Edit View Insert Format Tools Table Window Help 0 (9 D. "9 Q 8 Home Insert Draw Design Layout References Mailings Review View 9 Tell me l [9 Share' ' Cl Comments' E11"? @111 ViAA AV ' Aav ' A0 ' 9.1. i '7 AthCchEe AaBchDdEe Q i! EV # Paste B B I g ., ab X x: l A v j v A v l ., l & ., Nomiel l NoSiucins Styles Dictate Sensitivity Editor 6 z Pane 3' Indiana Company reported the following results from last year's operations: (35 points) Sales 513,200,000 Variable expenses 3 490 000 Contribution margin 4,710,000 Fixed expenses 3 654 000 Net operating Income 51 0% and Average operating assets m At the beginning of this year, the company has a $1,000,000 investment opportunity with the following characteristics: Sales Contribution margin ratio 50% of sales Fixed expenses $1,496,000 $3,400,000 The company's minimum required rate of return Is 17%, Required: a. what was last year's residual inoomei b. if the mmpany pursues the investment opportunity and otherwise performs the same as last year, what will be the overall residual Income this year? ii Indiana Company/s CEO earns a bonus only if residual income for this year exceeds residual Inwme for last year, would the CEO pursue the Investment opportunity? 0 Q7 @ 76.25 5 Terms of Service, Honor Code. 0 Mon Jul 25 8:03 PM ux ena- . YouTube . Adobe >