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Copy CLICK HERE TO SAVE YOUR WORK Fasanu's Alleys operate two bowling alleys, one in Brampton and one in Mississauga, Selected data on the two
Copy CLICK HERE TO SAVE YOUR WORK Fasanu's Alleys operate two bowling alleys, one in Brampton and one in Mississauga, Selected data on the two location to Brampton $900,000 $66,000 $300,000 Mississauga $2,000,000 $160,000 $1,000,000 2 3 Sales Net operating income Average operating assets 5 7 8 Mississauga Brampton 9 Required: 1. Compute the margin, turnover and return on investment (ROI) for each location. (3 marks) 10 11 12 13 14 Margin Turnover Return on investment Mississauga Brampton Assume that the minimum required return is 15%. Calculate the residual income for each location. (4 marks) NSX Zers Shoes 15 16 17 2. 18 19 20 New 7 8. ? 7 ROIRI V1 > #sea % 5 CUCK HERE TO SAVE YOUR WORK Assume that the minimum required return is 15%. Calculate the residual income for each location. Am Mississauga 2 Brampton 17 18 19 20 21 Residual income 22 23 Fasanu's Alleys is planning on opening a second location in Brampton. Selected projected data for the new location follow 3. $500,000 65% $137,000 $200,000 25 26 27 28 Projected sales Variable expenses Fixed expenses Operating assets 29 30 The manager of the Brampton location has been asked to operate this location. If the manager is evaluated using Role agree to operate this location? Why or why not? Show all supporting calculations (7 marks) 31 Home 32 33 34 New. 8. 35 ROIRI V1 ? 16 A I N 50
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