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Assume you are at the end of FYX2 and your division chose to introduce the new product, routers, during the year as described in

 

Assume you are at the end of FYX2 and your division chose to introduce the new product, routers, during the year as described in Requirement 3. Operating results by quarter for FYX2 are included in the project data file in the "Operating Results FYX2" worksheet. These operating results reflect revenues and expenses for ethernet repeaters and routers in FYX2 but do not reflect KMB Technology's special order from Requirement 4 (i.e., the data provided reflect FYX2 revenues and expenses for ethernet repeaters and standard routers only). Assume your division's average investment in operating assets for FYX2 (not including the asset purchase required for the KMB Technology special order) was $84.5 million. a. What is your division's return on sales for FYX2 without the KMB Technology special order? (1 point) b. What is your division's return on investment for FYX2 without the KMB Technology special order? (1 point) c. What is your division's residual income for FYX2 without the KMB Technology special order? (Assume the minimum required rate of return on investment in assets for your division is 11%.) (1 point) d. Now assume you accepted KMB Technology's special order as described in Requirement 4. Based on your analysis in Requirement 4, how did the special order affect your division's ROS, ROI, and residual income? ROS (with KMB order) ROI (with KMB order) Residual income (with KMB order) (1 point) (1 point) (1 point) Requirement 6: Management's analysis of FYX2 operating results Write a brief summary (no more than 1 paragraph) of your division's FYX2 operating results for your company's Chief Financial Officer and discuss your division's performance assuming you accepted the KMB Technology special order. Was accepting the special order the right decision? (2 points)

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a Return on Sales ROS for FYX2 without the KMB Technology special order ROS Operating Income Net Sales ROS 2863800 2653750 4651700 18750125 13125125 1... blur-text-image

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