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due in 1 hour. please help hope this is better QUESTIONS Western Prairie Wholers inc. has two autonomous divinilon, Alberta and Saskatchewan Financial Information for

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QUESTIONS Western Prairie Wholers inc. has two autonomous divinilon, Alberta and Saskatchewan Financial Information for fiscal year 2000 follows: Average operating its Contribution margin Fixed expenses Income before income taxes Income tax expense Income tax payable Interest expense Mortgage payable Not income Sales Variable expense ALBERTA $4,000,000 $2,850,000 $2,250,000 $625,000 $125,000 165,000 $75,000 $950,000 $500,000 $4,500,000 $1,550,000 SASKATCHEWAN $3,250,000 $1,800,000 $1,442.500 $317.500 $63,500 $35,000 $40,000 5500,000 $254,000 $2,875,000 $1.075,000 REQUIRED: 1. Western Prairie en ROI (return on investment) to evaluate the performance of their division managers. A large bonus in given to the division manager who achieves the highest ROI. Calculate the Rol achieved by the Alberta division and by the Saskatchewan division (5 marks) 2. Both divisions have been offered the opportunity to significantly expand their division. The expansion would require an additional investment of $500,000 of additional operating assets. It is estimated that the expansion would add $125,000 in sales and 560,000 in variable expenses to either division and there would be no change in faced expenses or interest expense. Income taxes would incase by 8%. Which division would be likely to accept the expansion opportunity Why? Support your answer with calculations. (4 marks) 3. Western Praire is thinking of a move from ROI to residual income as a measure of management performance. A minimum rate of return of 9% will be used. Calculate the residual income earned in fiscal 2020 by the Alberta and Saskatchewan divisions (4 marks) 4. I residual income is being used to evaluate management performance, would this have changed your answer to the expansion opportunity described in 2. above? Why or why not? (2 marks) QUESTI Western Prairie Wholesalers Inc. has two autonomous divisions, Alberta and Saskatchewan. Financial Information for fiscal year 2020 foliows: Average operating assets Contribution margin Fixed expenses Income before income taxes Income tax expense Income taxes payable Interest expense Mortgage payable Net Income Sales Variable expenses ALBERTA $4,000,000 $2,950,000 $2,250,000 $625,000 $125,000 $65,000 $75,000 $950,000 $500,000 $4,500,000 $1,550,000 SASKATCHEWAN $3,250,000 $1,800,000 $1,442,500 $317.500 $63.500 $35.000 $40,000 $500,000 $254.000 $2.875.000 $1.075,000 REQUIRED: 1. Western Prairie uses ROI (return on investment) to evaluate the performance of their division managers. A large bonus is given to the division manager who achieves the highest ROI. Calculate the ROI achieved by the Alberta division and by the Saskatchewan division (5 marks) 2. Both divisions have been offered the opportunity to significantly expand their division. The expansion would require an additional investment of $500,000 of additional operating assets. It is estimated that the expansion would add $125,000 in sales and $60,000 in variable expenses to either division and there would be no change in fixed expenses or interest expense. Income taxes would increase by 8%. Which division would be likely to accept the expansion opportunity? Why? Support your answer with calculations. (4 marks) 3. Western Prairie is thinking of a move from ROI to residual income as a measure of management performance. A minimum rate of return of 9% will be used. Calculate the residual income earned in fiscal 2020 by the Alberta and Saskatchewan divisions. (4 marks) 4. I residual income is being used to evaluate management performance, would this have changed your answer to the expansion opportunity described in 2. above? Why or why not? (2 marks) Western Prairie Wholesalers Inc. has two autonomous divisions, Alberta and Saskatchewan. Financial Information for fiscal year 2020 follows: Average operating assets Contribution margin Fixed expenses Income before income taxes Income tax expense Income taxes payable Interest expense Mortgage payable Net income Sales Variable expenses ALBERTA $4,000,000 $2,950,000 $2,250,000 $625,000 $125,000 $65,000 $75,000 $950,000 $500,000 $4,500,000 $1,550,000 SASKATCHEWAN $3,250,000 $1,800,000 $1,442,500 $317,500 $63,500 $35,000 $40,000 $500,000 $254,000 $2,875,000 $1,075,000 REQUIRED: 1. Western Prairie uses ROI (return on investment) to evaluate the performance of their division managers. A large bonus is given to the division manager who achieves the highest ROI. Calculate the ROI achieved by the Alberta division and by the Saskatchewan division (5 marks) 2. Both divisions have been offered the opportunity to significantly expand their division. The expansion would require an additional investment of $500,000 of additional operating assets. It is estimated that the expansion would add $125,000 in sales and $60,000 in variable expenses to either division and there would be no change in fixed expenses or interest expense. Income taxes would increase by 8%, Which division would be likely to accept the expansion opportunity? Why? Support your answer with calculations. (4 marks) 3. Western Prairie is thinking of a move from ROI to residual income as a measure of management performance. A minimum rate of return of 9% will be used Calculate the residual income earned in fiscal 2020 by the Alberta and Saskatchewan divisions. (4 marks) 4. If residual income is being used to evaluate management performance, would this have changed your answer to the expansion opportunity described in 2. above? Why or why not? (2 marks) Western Prairie Wholesaleen Inc. has two autonomoun division, Alberta and Saskatchewan. Financial Information for the year 2000 follow Average operating assets Contribution margin Fixed expenses Income before income taxes Income tax expense Income taxes payable Interest expense Mortgage payable Net income Sales Variable expenses ALBERTA $4,000,000 $2,950,000 $2,250,000 $625,000 $125,000 $65.000 $75,000 $950,000 $500,000 $4,500,000 $1,550,000 SASKATCHEWAN $3.250,000 $1,800,000 $1,442,500 $317.500 $63,500 $35.000 $40,000 $500,000 $254.000 $2,875,000 $1,075,000 REQUIRED: 1. Western Prairie uses ROI return on investment to evaluate the performance of their division managers. A large bonus is given to the division manager who achieves the highest ROI. Calculate the ROI achieved by the Alberta division and by the Saskatchewan division (5 marks) 2. Both divisions have been offered the opportunity to significantly expand their division. The expansion would require an additional investment of $500,000 of additional operating assets. It is estimated that the expansion would add $125,000 in sales and $60,000 in variable expenses to either division and there would be no change in fixed expenses or interest expense. Income taxes would increase by 8%. Which division would be likely to accept the expansion opportunity? Why? Support your answer with calculations. (4 marks) 3. Western Prairie is thinking of a move from Rol to residual income as a measure of management performance. A minimum rate of return of 9% will be used Calculate the residual income earned in fiscal 2020 by the Alberta and Saskatchewan divisions. (4 marks) 4. It residual income is being used to evaluate management performance, would this have changed your answer to the expansion opportunity described in 2. above? Why or why not? (2 marks)

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