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for the next2 questions: The following selected data pertain to the belt division of Allen Corp. for last ar: Sales Average operating assets Net operating

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for the next2 questions: The following selected data pertain to the belt division of Allen Corp. for last ar: Sales Average operating assets Net operating income Asset Turnover ratio Minimum required return $2,000,000 $500,000 S300,000 4.0 18% 4) Compute the return on investment. 5) Compute the residual income. Division X makes a part with the following characteristics: Production capacity Selling price to outside customers Variable cost per unit Fixed cost, total 25,000 units $ 18 $100,000 Division Y of the same company would like to purchase 10,000 units each period from Division X. Division Y now purchases the part from an outside supplier at a price of $17 each. 6) Suppose Division X has ample excess capacity to handle all of Division Y's needs without any increase in xed costs and without cutting into sales to outside customers. If Division X refuses to accept the $17 price the company's profit as a whole? Use"+"or"to denote any increase or decrease in profit. internally and Division Y continues to buy from the outside supplier, what would be the overall impact on 7) Suppose that Division X is operating at capacity and can sell all of its output to outside customers. If Division X sells the parts to Division Y at $17 per unit, what would be the overall impact on the company' profit as a whole? Use ""to denote any increase or decrease in profit

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