Financial performance measures profit margin Return on investment = net income = net income ave assets sales inv turnover inv center sales ave assets Residual income = net income-target income INSTRUCTIONS: Enter numbers in blue cells Enter formulas in the yellow cells Enter your narrative analysis in the green cells 1. Compute the return on Assets for each division below Investment Center Sales Net income Ave assets Return on Investment 41,250,000 $4,550,000 $22,500,000 Coffee/Expresso machine Coffee machine w/ grinder Basic Coffee maker 16,975,000 10,400,000 $1,975,000 875,000 10,950,000 7,500,000 2. Assume a target income of 12% of average invested assets. Compute the residual income for each division Coffee machine Coffee/Expresso machine Problem 3 Basic Coffee maker salarindar Problem 1 Problem 2 Ready A - = = ay 16 MA BIU. V fx Wrap Text Merge & Center General $ . % Paste E35 ) ET BE Conditional Format Formatting as Table Call Styles x 18 2. Assume a target income of 12% of average invested assets. Compute the residual income for each division Coffee/Expresso Coffee machine.. Basic Coffee maker w/ grinder 12% Net Income Less target net Income Residual Income coffee/Expresso machine Coffee machine w/ grinder Basic Coffee maker Profit Margin Net income Sales Investment Turnover Inv ctr sales Ave assets ROI 3. If you were the Vice President over the Coffee Machine Division what is your analysis of the three products? Problem 1 Problem 2 Problem 3 + Ready Excel File Edit View Insert Format Tools Data Window Help AC306 Unit 6 Assignment template View . Insert Page Layout Formulas Data Calibri (Body! 16 . AA = B I U . . A. E Review = = Be Wrap Text Marge & Carter. General $. % ) Conditional Format Cole E54 Inv ctr sales Ave assets ROI 3. If you were the Vice President over the Coffee Machine Division what is your analysis of the three products? Are there products where sales is a concern? If so, what three steps would you take to perform further analysis as to whether or not you should discontinue the product? Problem 1 Problem 2 Problem 3 + Ready