At the quarterly meeting, executives expressed concern over the newly acquired subsidiary's performance for the previous quarter. The company typically strives for a minimum rate of return of $5\%.$ The plant manager has suggested dropping the Wheat Cereal from the product line. They believe that the savings on product advertising would substantially benefit the company's margin and ROI. The production team advised that salaried employees and all other production$-$related expenses could be reallocated to other products if the line was dropped One of the executive team members suggests adjusting the products' selling price to achieve the desired rate of return. The VP of Marketing says they can look into it$,$ but there isn't a lot of product differentiation in the market right now. They could coordinate with Research and Development to differentiate the product to justify a pricing change. However, at the moment the company is a price taker, not setter. They acknowledge a change in product and pricing will likely impact the reliability of the sales forecast. Still, if a new price can be set, they would, at the very least, be able to determine a minimum units to be sold for each month. They would need to determine what additional data they need before having clear answers. A member of the marketing team does mention that there may be an opportunity to increase sales by changing the advertising angle a bit. They could reposition their messaging to capitalize on some consumer trends. The new mill is a small operation that could be marketed as a more artisanal brand. There is potential to increase demand by $15\%$ for all three products. At this point, the operations manager speaks up$,$ reminding the team that they are at production capacity, as their existing equipment only has an operating maximum of $200$ hours per month. The executive team wants to hold off on any decisions until they have given the finance team some time to prepare the appropriate reports needed to accurately assess the mill's and each product's performance and evaluate the alternatives currently on the table. required $1.$ Prepare a new format contribution income segmented income statement for the $1$st quarter. $2.$ What will be the effect on net operating income for the $1$st quarter if the wheat cereal mix is dropped? $3.$ Calculate the ROI for the products. $4.$calculate the cash collection and case disbursement in a table form.