ANSWER IN EXCEL FORMULA FORMAT

Genmure Corporation is trying to analyze the results of three efficiency initiatives that were taken on the previous fiscal period. Below is data relating to these projects:

Factory Automation

Sales $ $400,000$

Operating Expenses $225,000$

Income Tax Expense $30,000$

Average Assets Invested $1,100,000$

Re$-$Certify Labor Force

Sales $ $290,000$

Operating Expenses $265,000$

Income Tax Expense $4,000$

Average Assets Invested $125,000$

Update Tools and Equipment

Sales $ $142,000$

Operating Expenses $48,000$

Income Tax Expense $18,000$

Average Assets Invested $500,000$

Required:

Determine the Margin, Turnover, Return on Investment, and Residual Income for each initiative.

Which initiative outperformed the others on the basis of Return on Investment?

Which initiative outperformed the others on the basis of Residual Income?

Management is pleased with the results of the last year and is offering additional resources to continue the positive trend with the initiatives.

Recalculate the amounts with management's additional funding. Assume Income Tax remains the same.

Determine the Margin, Turnover, Return on Investment, and Residual Income for each initiative with management's additional funding.

If the manager for the labor force's performance uses ROI, would the manager accept the management's funding?

If the manager for the Tools and Equipment's performance uses Residual Income, would the manager accept the management's funding?

If the manager for Factory Automation's performance uses Return on Investment, would the manager accept the management's funding?

If the manager for Factory Automation's performance uses Residual Income, would the manager accept the management's funding?