Chapter 11 Sweet Treats Sweet Treats had the following results from 2022 operations: Sales $14,000,000 -Variab|e Expenses 9,560,000 Contribution Margin 4,440,000 -Fixed Expenses 3,740,000 Net operating income $ 700,000 Average operating assets $ 7,000,000 1} Calculate turnover in 2022 for Sweet Treats. 2} Calculate return on investment (ROI) in 2022 for Sweet Treats. Midwest Ice Fishing Midwest Ice Fishing Excursions is considering an investment of $700,000 to enhance their excursion offerings. The following table details the characteristics of the potential investment: Sales increase $2,240,000 Contribution margin 40% of increased sales Fixed expenses $739,200 1} What is the margin of the potential investment for Midwest Ice Fishing Excursions? Best Italian Eats The Pizza division of Best Italian Eats had average operating assets of $800,000 and net operating incume of $31,300 in 2022. The minimum required rate of return for evaluation purposes is 10%. 1} What was the residual IncOme in 2022 for the Pizza division? Stavos Company Stavos Company's Screen Division produces a screen that is used by manufacturers of HDTVs. Sales and cost data on the screens follow: Market selling price per unit $165 Variable costs per screen $112 Fixed costs per screen {based on capacity} $10 Capacity in units 30,000 Stavos Company has a TV Division that could use this screen in their manufacturing of HDTVs. The TV Division will need 3,000 screens per year. It has received a quote of $159 per screen from another manufacturer. Stavos Company evaluates division managers on the basis of divisional prots. Assume the Screen Division is selling 26,500 screens per year to outside customers. 1} From the standpoint of the Screen Division, what is the lowest acceptable transfer price for screens sold to the TV Division? (round to the nearest dollar) 2} From the standpoint of the TV Division, what is the highest acceptable transfer price for screens acquired from the Screen Division? 3} What is the range of acceptable transfer prices (if any) between the two divisions