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assist with the following please 19-25 Return on Investment; Goal Congruence Issues As indicated in the chapter, return on investment (ROI) is well entrenched in

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19-25 Return on Investment; Goal Congruence Issues As indicated in the chapter, return on investment (ROI) is well entrenched in business practice. However, its use can have negative incentive effects on managerial behavior. For example, assume you are the manager of an investment center and that your annual bonus is a function of achieved ROI for your division. You have the opportunity to invest in a project that would cost $500,000 and that would increase annual operating income of your division by $50,000. (This level of return is considered acceptable from top management's standpoint.) Currently, your division generates annual operating profits of approximately $600,000, on an asset base (i.e.. level of investment) of $4.000.000. Required I. What is the current return on investment (ROI) being realized by your division (i.e., before considering the new investment)? 2. What would happen to the near-term ROI of your division after adding the effect of the new investment?19-41 Return on Investment; Residual Income Consolidated Industries is a diversified manufacturer with business units organized as divisions, including the Reigis Steel Division. Consolidated monitors its divisions on the basis of both unit contribution and return on investment (ROI), with investment defined as average operating assets employed. All investments in operating assets are expected to earn a minimum return of 9% before income taxes. Reigis's cost of goods sold is considered to be entirely variable: however, its administrative expenses do not depend on volume. Selling expenses are a mixed cost with one-third attributed to sales volume. The 2019 operating statement for Reigis follows. The division's operating assets employed were $50,750,000 at November 30, 2019, unchanged from the year before. REIGIS STEEL DIVISION Operating Statement For the Year Ended November 30. 2019 (000s omitted) Sales revenue $36.000 Less expenses: Cost of goods sold $18.675 Administrative expenses 4.000 Selling expenses _2.700 25.375 Income from operations, before tax $10.625Required 1. Calculate Reigis Steel Division's unit contribution if it produced and sold 1.500,000 units during the year ended November 30. 2019. 2. Calculate the following performance measures for 2019 for Reigis: a. Pretax ROI. based on average operating assets employed. b. Residual income (RI). calculated on the basis of average operating assets employed. 3. Reigis management is presented the opportunity to invest in a project that would earn an ROI of 10%. Is Reigis likely to accept the project? Why or why not

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