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ROT, Residual Income Raddington Industries produces tool and die machinery for manufacturers. The company expanded vertically in 20x1 by acquiring one of its suppliers of alloy steel plates, Kelmer Steel Company. To manage the two separate businesses, the operations of Kelmer are reported separately as an investment center. Raddington monitors its divisions on the basis of both unit contribution and return on average investment (ROI), with Investment defined as average operating assets employed. Management bonuses are determined on ROI. All investments in operating assets are expected to earn a minimum return of 10 percent before income taxes. Keimer's cost of goods sold is considered to be entirely variable, while the division's administrative expenses are not dependent on volume. Selling expenses are a mixed cost with 35 percent attributed to sales volume. Keimer contemplated a capital acquisition with an estimated ROI of 12.10 percent; however, division management decided against the investment because it believed that the investment would decrease Keimer's overall ROI. The 20x2 operating statement for Kelmer follows. The division's operating assets employed were $12,521,600 at November 30, 20X24 percent increase over the 20x1 year-end balance Kelmer Steel Company Operating Statement For the Year Ended November 30, 20x2 $25,160,000 Sales revenue Less expenses Cost of goods sold Administrative expenses 516,857,200 4,071,800 2.692.000 Selling expenses Operating income before income taxes 23,621,000 $1,539,000 Required: 1 side the contribution for Atel.com And die 20 RUM Dey Wor ROT, Residual Income Raddington Industries produces tool and die machinery for manufacturers. The company expanded vertically in 20x1 by acquiring one of its suppliers of alloy steel plates, Kelmer Steel Company. To manage the two separate businesses, the operations of Kelmer are reported separately as an investment center. Raddington monitors its divisions on the basis of both unit contribution and return on average investment (ROI), with Investment defined as average operating assets employed. Management bonuses are determined on ROI. All investments in operating assets are expected to earn a minimum return of 10 percent before income taxes. Keimer's cost of goods sold is considered to be entirely variable, while the division's administrative expenses are not dependent on volume. Selling expenses are a mixed cost with 35 percent attributed to sales volume. Keimer contemplated a capital acquisition with an estimated ROI of 12.10 percent; however, division management decided against the investment because it believed that the investment would decrease Keimer's overall ROI. The 20x2 operating statement for Kelmer follows. The division's operating assets employed were $12,521,600 at November 30, 20X24 percent increase over the 20x1 year-end balance Kelmer Steel Company Operating Statement For the Year Ended November 30, 20x2 $25,160,000 Sales revenue Less expenses Cost of goods sold Administrative expenses 516,857,200 4,071,800 2.692.000 Selling expenses Operating income before income taxes 23,621,000 $1,539,000 Required: 1 side the contribution for Atel.com And die 20 RUM Dey Wor