Information for three efficiency initiatives for Genmure Corporation is presented in cells A$4$ to B$8$; A$10$ to B$14$ and A$16$ to B$20.$ A statement of requirement is presented in row $25.$ Tables for student presentation are provided in cells A$26$ to B$30$; A$32$ to B$36$; A$38$ to B$42$ and A$44$ to F$45.$ A table with additional information is provided cells A$49$ to B$51.$ A statement of requirement is presented in rows $54$ to $55.$ Tables for student presentation are provided in cells A$57$ to B$61$; A$63$ to B$67$; A$69$ to B$73$; A$75$ to B$79$; A$81$ to B$85$; A$87$ to B$91$ and A$93$ to H$96.$

Genmure Corporation is trying to analyze the results of three efficiency initiatives that were taken on the previous fiscal period. Below is data relating to these projects:

Factory Automation

Sales $$400,000$

Operating Expenses $225,000$

Income Tax Expense $30,000$

Average Assets Invested $1,100,000$

Re$-$Certify Labor Force

Sales $$290,000$

Operating Expenses $265,000$

Income Tax Expense $4,000$

Average Assets Invested $125,000$

Update Tools and Equipment

Sales $$142,000$

Operating Expenses $48,000$

Income Tax Expense $18,000$

Average Assets Invested $500,000$

Hurdle Rate: $12\%$

Required:

Determine the Margin, Turnover, Return on Investment, and Residual Income for each initiative.

Factory Automation

Margin

Turnover

Return on Investment $($ROI$)$

Residual Income $($RI$)$

Re$-$Certify Labor Force

Margin

Turnover

Return on Investment $($ROI$)$

Residual Income $($RI$)$

Update Tools and Equipment

Margin

Turnover

Return on Investment $($ROI$)$

Residual Income $($RI$)$

Which initiative outperformed the others on the basis of Return on Investment?

Which initiative outperformed the others on the basis of Residual Income?

Management is pleased with the results of the last year and is offering additional resources to continue the positive trend with the initiatives.

Additional Assets to Invest $$325,000$

Increase to Sales $30\%$

Increase to Operating Expenses $15\%$

Required:

Recalculate the amounts with management's additional funding. Assume Income Tax remains the same.

Determine the Margin, Turnover, Return on Investment, and Residual Income for each initiative with management's additional funding.

Factory Automation

Sales

Operating Expenses

Income Tax Expense

Average Assets Invested

Re$-$Certify Labor Force

Sales

Operating Expenses

Income Tax Expense

Average Assets Invested

Update Tools and Equipment

Sales

Operating Expenses

Income Tax Expense

Average Assets Invested

Factory Automation

Margin

Turnover

Return on Investment $($ROI$)$

Residual Income $($RI$)$

Re$-$Certify Labor Force

Margin

Turnover

Return on Investment $($ROI$)$

Residual Income $($RI$)$

Update Tools and Equipment

Margin

Turnover

Return on Investment $($ROI$)$

Residual Income $($RI$)$

If the manager for the labor force's performance uses ROI, would the manager accept the management's funding?

If the manager for the Tools and Equipment's performance uses Residual Income, would the manager accept the management's funding?

If the manager for Factory Automation's performance uses Return on Investment, would the manager accept the management's funding?

If the manager for Factory Automation's performance uses Residual Income, would the manager accept the management's funding?