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Additional information Total Assets: $25,839,700. Anticipated ROI was to be 18%. Budgeted sales were based on selling 119,100 units. 125,800 units were actually sold at

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Additional information Total Assets: $25,839,700. Anticipated ROI was to be 18%. Budgeted sales were based on selling 119,100 units. 125,800 units were actually sold at $121. Actual Expenses are based on the following projections: Cost of Goods sold is 40% of sales. Sales Commissions are calculated at 2.5% of sales. Salaries & Wages Expense are 8% of sales. Manufacturing Expenses are 4% of sales. Other Expenses amount to 2.5% of sales. Depreciation Expense is 4% of sales Actual Static Budget Net Sales Revenue $13,156,900 $15,052,300 Cost of goods sold $6,439,800 $6,573,300 Gross profit $6,717,100 $8,479,000 Operating Expenses: Sales Commissions $225.900 $196,200 Salaries & Wages Expense $1,509,400 $1,564,500 Manufacturing Expenses $886,900 $855,700 Other Expenses $370,300 $295,100 Depreciation Expense $428,600 $480,900 Total Operating Expenses $3,421,100 $3,392,400 Operating Income $3,296,000 $5,086,600 Actual Flex Variance F/U/- Flex Budget Sales Budget F/U/- Static Budget $15,052,300 $6,573,300 $8,479,000 $196,200 Net Sales $13,156,900 Revenue Cost of goods sold $6,439,800 Gross profit $6,717,100 Operating Expenses: Sales $225,900 Commissions Salaries & Wages $1,509,400 Expense Manufacturing $886,900 Expenses Other $370,300 Expenses Depreciation $428,600 Expense Total Operating $3,421,100 Expenses Operating $3,296,000 Income $1,564,500 $855,700 $295,100 $480,900 $3,392,400 $5,086,600 Actual Results Segment Net Income Investment base (assets) ROI (%) Q-Corporation Did the Company meet its goal? 3. Compute the RI. Assume the cost of capital is 15%. Actual Results Segment Net Income Investment base (assets) Cost of Capital (%) Minimum Income Residual Income 4. Compare the Actual Price per unit to the Static Budgeted Price per unit. Total Sales | # of Units Sold - Sales price per unit Actual 11 Budget / =

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