ALL ANSWERS MUST BE ANSWERED IN A FORMULA.

A1 X fax Adams Corporation evaluates divisional managers based on ROI. Operating A B D E F 4 1 Adams Corporation evaluates divisional managers based on ROI. Operating results for the 2 company's Northern Division for last year are given below: 3 Sales $ 27,000,000 Variable expenses 16,200,000 Contribution margin 10,800,000 7 Fixed expenses 8,805,000 8 Net operating income S 1.995.000 5 6 9 10 Average divisional operating assets 9,500,000 11 12 The Northern Division has an opportunity to add a new product line at the beginning of the year as follows: 13 14 Average required investment Net operating income $ $ 2,500,000 400,000 15 16 17 Adams Corporation's minimum acceptable rate of return 15% 18 19 Assuming the company accepts all projects that meet or exceed the minimum rate of return, compute the following: 20 21 Northern Division ROI for last year 22 15 Net operating income 400,000 16 17 Adams Corporation's minimum acceptable rate of return 15% 18 19 Assuming the company accepts all projects that meet or exceed the minimum rate of return, compute the following: 20 21 Northern Division ROI for last year 22 23 Northern Division ROI if new product line is added 24 25 Write an IF statement to determine whether the Northern Division 26 manager will ACCEPT or REJECT the new product line based on ROI. 27 28 Northern Division residual income for last year 29 30 Northern Division residual income if the new product line is added 31 32 Write an IF statement to determine whether the Northern Division manager 33 will ACCEPT or REJECT the new product line based on residual income 34 35 36 37