Accessibility Mode 1. They have asked you to prepare managerial accounting data of their current operation. They know the amount of ingredients in each cake but do not know how much labor to add to the cost and the amount of overhead to allocate to each cake. The accountant they have hired is good at preparing financial statements they need to give to the bank and prepare taxes and payroll but is not a managerial accountant and is not able to help. They need to know the cost per cake in order to be able to calculate their cost of goods sold. A list of the calculations they would like for you to prepare for them, as well as, information concerning next period's operations is on the following page. 2. Michelle and Vishayla are thinking of expanding their operations. They want to build a new bakery that will allow them to expand their operation. The new building will allow them to add more ovens, larger prep and decoration stations, and be able to open a retail store in the front of the building. A piece of land is available close to Fort Lee which will give them greater access to military and civilian personnel. They want you to determine the feasibility of this new venture. The needed calculations and relevant data are on the following pages. Task 2 They believe it will cost them $250,000 to purchase the land near Fort Lee and to build a bakery and storefront. Your task is: 1) Calculate Return on Investment if the expected increase in net income, due to opening the new location near Ft. Lee, is $35,000. 2) Calculate Asset Turnover Rate and Margin if the expected sales increased to $450,000 3) Calculate Residual Income if the required rate of return is 15%