Financial data for Bridger Inc. for last year are as follows:

BRIDGER INC. Balance Sheet
	Ending Balance	Beginning Balance
Assets
Cash	$	155,000		$	150,000
Accounts receivable		410,000			270,000
Inventory		420,000			480,000
Plant and equipment, net		725,000			740,000
Investment in Brier Company		500,000			470,000
Land (undeveloped)		320,000			320,000
Total assets	$	2,530,000		$	2,430,000
Liabilities and shareholders equity
Accounts payable	$	290,000		$	320,000
Long-term debt		1,000,000			1,000,000
Shareholders equity		1,240,000			1,110,000
Total liabilities and shareholders equity	$	2,530,000		$	2,430,000

BRIDGER INC. Income Statement
Sales				$	4,020,000
Operating expenses					3,417,000
Operating income					603,000
Interest and taxes:
Interest expense	$	125,000
Tax expense		205,000			330,000
Net income				$	273,000

The company paid dividends of $122,000 last year. The Investment in Brier Company on the balance sheet represents an investment in the common shares of another company.

Required: 1. Compute the companys margin, turnover, and ROI for last year. (Round your intermediate calculations and final answers to 2 decimal places.)

2. The board of directors of Bridger Inc. has set a minimum required return of 20%. What was the companys residual income last year?

Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two officesone in Toronto and one in Vancouver. The firm classifies the direct costs of consulting jobs as variable costs. A segmented contribution format income statement for the companys most recent year is given below:

					Office
	Total Company	Toronto	Vancouver
Sales	$	1,050,000	100.0	%	$	150,000	100	%	$	900,000	100	%
Variable expenses		585,000	55.71			45,000	30			540,000	60
Contribution margin		465,000	44.29			105,000	70			360,000	40
Traceable fixed expenses		153,000	14.57			63,000	42			90,000	10
Office segment margin		312,000	29.71		$	42,000	28	%	$	270,000	30	%
Common fixed expenses not traceable to offices		108,000	10.29
Operating income	$	204,000	19.43	%

Required: 1. By how much would the companys operating income increase if Vancouver increased its sales by $94,000 per year? Assume no change in cost behaviour patterns.

2-a. Refer to the original data. Assume that sales in Toronto increase by $75,000 next year and that sales in Vancouver remain unchanged. Assume no change in fixed costs. Prepare a new segmented income statement for the company. (Round your percentage answers to 2 decimal places.)

2-b. This part of the question is not part of your Connect assignment.