Hey, please answer both parts A & B. It wouldn't make sense for me to post part B separately by itself without the required part A for the information.

Thank you!

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(Just repeating the question)

The president feels very strongly that Mountain Sports should expand operations to a second location. She has even found a prime location in Canmore, Alberta, One of the great things about Canmore is its proximity to the mountains, and its only about 10 minutes away from this beautiful, vibrant and internationally known Banff tourist town. Research indicates that the Canmore market is well suited to both cross-country skis and bikes that competition is fairly limited.

Part A: (4 marks) Calculate the following performance measurements for the proposed Canmore expansion:

Part B: Analysis (4 marks) Explain in your own words using case data. Marks will not be awarded for textbook definitions).

a. If management is evaluated based on ROI, will the project be accepted (expansion into Canmore)? Why or why not?

b. If management is evaluated based on residual income, will the expansion into Canmore be accepted? Why or why not?

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Question 4 - Performance Measurement (8 marks) The president feels very strongly that Mountain Sports should expand operations to a second location. She has even found a prime location in Canmore, Alberta, One of the great things about Canmore is its proximity to the mountains, and its only about 10 minutes away from this beautiful, vibrant and internationally known Banff tourist town. Research indicates that the Canmore market is well suited to both cross-country skis and bikes that competition is fairly The investment in assets (cash, inventory, equipment) required for the new location $ 211,000 Minimum required return on investments 13% Actual 2019 return on investment of the original location 21% Management has provided the following income statement to the bank manager the expected net Static Budget % Amount Sales in Units 4,064 Sales 508,000 100% Less: Variable Costs: Cost of Goods Sold 224,000 44% Sales Commissions 76,200 15% Total Variable Costs 300,2 59% Contribution Margin 207,800 41% Less: Fixed Costs: Advertising 24,000 Property Taxes 10,000 Rent 48,000 Salaries & Wages 103,000 Total Fixed Costs 185,000 Net Operating Income 22.800 Part A: (4 marks) Calculate the following performance measurements for the proposed Canmore expansion: Margin (see Chapter 11 notes) Turnover (use investment in assets in equation) Return on Investment Residual Income Part B: Analysis (4 marks) Explain in your own words using case data. Marks will not be awarded for textbook definitions). a. If management is evaluated based on ROI, will the project be accepted (expansion into Canmore)? Why or why not? b. If management is evaluated based on residual income, will the expansion into Canmore be accepted? Why or why not