Kyler Ceramics, a division of Anderson Corporation, has an operating income of $64,000 and total assets of $400,000. The required rate of return for the company is 10%. The company is evaluating whether it should use return on investment (ROI) or residual income (RI) as a measurement of performance for its division managers. The manager of Kyler Ceramics has the opportunity to undertake a new project that will require an investment of $100,000. This investment would earn $14,000 for the company. Read the requirements. Requirement 1. What is the original return on investment (ROI) for Kyler Ceramics (before making any additional investment)? First determine the formula to calculate the ROI. What is the original return on investment (ROI) for Kyler Ceramics (before making any additional investment)? What would the ROI be for Kyler Ceramics if this infuestment opportunity were undertaken? Would the manager of the Kyler Ceramics division want to make this investment if she were evaluated based on ROI? Why or why not? What is the ROI of the investment opportunity? Would the investment be desirable from the standpoint of Anderson Corporation? Why or why not? What would the residual income (RI) be for Kyler Ceramics if this investment opportunity were to be undertaken? Would the manager of the Kyler Ceramics division want to make this investment if she were evaluated based on RI? Why or why not? What is the RI of the investment opportunity? Would the investment be desirable from the standpoint of Anderson Corporation? Why or why not? Which performance measurement method, ROI or RI, promotes goal congruence? Amazing Muffins sells its muffins to restaurants and coffee houses for an average selling price of $32 per case. The following information relates to the budget for Amazing Muffins for this year (all figures are annual totals unless otherwise noted): View the budget information. View the actual expenses (in total) from this year. Read the requirement. (Enter the variances as positive numbers. Label each variance as favorable (F) or unfavorable (U), in the input field after the amount you enter. If the variance is 0 , make sure to enter in a " 0 ". A variance of zero is considered favorable.) Amazing Muffins Flexible Budget Performance Report - Sales and Operating Expenses Budget information Actual expenses During the year, Amazing Muffins actually sold 7,500 cases, resulting in total sales revenue of $247,600. Requirement Construct a flexible budget performance report for Amazing Muffins for the year. Be sure to indicate whether each variance is favorable (F) or unfavorable (U)