For each of the three beds for the most recent year is provided below Perfect True Sleep Sleeper Average operating assets $ 3.000.000 S 500 000 1.000.000 1.500.000 $ $ 300 000 $ 1.200 000 2.000.000 sen 000 500 000 200 000 300.000 16120.000 240.000 Revenues Cost of goods sold Contribution Margin Rxed costs Direct advertising Common advertising Warehouse rental Equipment rental Other general and administrative Total fixed costs Operating income 100.000 50.000 200.000 300.000 850.000 170.000 212 500 87.500 127.500 112.500 00 0001 Additional formation: To measure divisional perfomance, Lux Sleepers allocates all fixed costs on the basis of their relative sales dollars (as shown above b 20% of the direct advertising costs was spent on promoting Perfect Sleeper: 30% on True Sleep with the remainder on Sleeper Elite The equipment rental charge is based on an hourly rate of $150. Sleeper Elite used 1.000 hours True Sleep used 600 hours and Perfect Sleeper used 400 hours d. Warehouse rental changes are based on square feet ublized. Sleeper Elite occupies 6.000 square metres True Sleep 10,000 square metres and Perfect Sleeper 4,000 square metres REQUIRED: 1. Prepare a new contibution fomat segmented income statement for Lux Sleepers Inc for the most recent year marks) 2 Management of Lux Sleepers inc. are considering dropping the Sleeper Elite division as it is losing $30.000, and investing the resulting proceeds in the Perfect Sleeper Division marks) By reference to your work in Part 1 above, do you agree with this decision? Bely explaint marks) Provide two areas of concem anderen of interest that you have arising from your Part 1 work and what proposed course of action you would recommend. (4 marks) 3. Assuming that divisional segment margin is equal to operating income for computing Rotum an investment ROI) and Residual income performance measures, and the minimum required ROLIS 10% marks) Compute the RON for the Perfect Sloper division (1 mark) L. Will the owner of Lux S perne be happy with the Portlet Sleeper divisional performance based on the RON mark) The Perfect Sleeper division is presented with a $50.000 investment opportunity that generaties spring income of $6.000, will they accept the opportunity it ROI is the perfomance measure? Should they accept this 3 marks) . Compute the forth Portet Sieper division (1 mark) W. B y explain why you prefer ROTORI as a performance measure in this case (1 mark) For each of the three beds for the most recent year is provided below Perfect True Sleep Sleeper Average operating assets $ 3.000.000 S 500 000 1.000.000 1.500.000 $ $ 300 000 $ 1.200 000 2.000.000 sen 000 500 000 200 000 300.000 16120.000 240.000 Revenues Cost of goods sold Contribution Margin Rxed costs Direct advertising Common advertising Warehouse rental Equipment rental Other general and administrative Total fixed costs Operating income 100.000 50.000 200.000 300.000 850.000 170.000 212 500 87.500 127.500 112.500 00 0001 Additional formation: To measure divisional perfomance, Lux Sleepers allocates all fixed costs on the basis of their relative sales dollars (as shown above b 20% of the direct advertising costs was spent on promoting Perfect Sleeper: 30% on True Sleep with the remainder on Sleeper Elite The equipment rental charge is based on an hourly rate of $150. Sleeper Elite used 1.000 hours True Sleep used 600 hours and Perfect Sleeper used 400 hours d. Warehouse rental changes are based on square feet ublized. Sleeper Elite occupies 6.000 square metres True Sleep 10,000 square metres and Perfect Sleeper 4,000 square metres REQUIRED: 1. Prepare a new contibution fomat segmented income statement for Lux Sleepers Inc for the most recent year marks) 2 Management of Lux Sleepers inc. are considering dropping the Sleeper Elite division as it is losing $30.000, and investing the resulting proceeds in the Perfect Sleeper Division marks) By reference to your work in Part 1 above, do you agree with this decision? Bely explaint marks) Provide two areas of concem anderen of interest that you have arising from your Part 1 work and what proposed course of action you would recommend. (4 marks) 3. Assuming that divisional segment margin is equal to operating income for computing Rotum an investment ROI) and Residual income performance measures, and the minimum required ROLIS 10% marks) Compute the RON for the Perfect Sloper division (1 mark) L. Will the owner of Lux S perne be happy with the Portlet Sleeper divisional performance based on the RON mark) The Perfect Sleeper division is presented with a $50.000 investment opportunity that generaties spring income of $6.000, will they accept the opportunity it ROI is the perfomance measure? Should they accept this 3 marks) . Compute the forth Portet Sieper division (1 mark) W. B y explain why you prefer ROTORI as a performance measure in this case (1 mark)