M & M Sports had the following information reported for the company as a whole and for their football equipment segments which are part of their operation. M & M Sports $11,989,000 $1,103,800 Investment Base $4,551,600 Sales Income Rib Protectors $275,000 $41,500 Investment Base $95,000 Sales Income M & M Sports anticipates these relationships will stay consistent for the next business year. The Football Segment is looking at the possibility of adding a new segment next year for Rib Pads. The projected data for this segment is: Segment Net Income Investment base (assets) ROI (%) (Round your answers to two decimal places when needed and use rounded answers for all future calculations). Segment Net Income Investment base (assets) ROI (%) 1. Determine the return on investment for M & M Sports, for the Football Segment, the Helmets segment and the Shoulder Pads segment separately for the year. M & M Sports Helmets Segment $1,440,400 $804,400 $304,700 $38,100 $903,100 $131,300 Shoulder Pads Segment Segment Net Income Investment base (assets) Cost of Capital Minimum Income Residual Income 2. Based on the information provided, determine the effect of adding the Rib Pads on the Football segment's return on investment and the Rib Pad segment alone. Total Helmets Segment $2,044,800 $342,800 $1,034,400 Football Segment Rib Pads w/Rib Pads Segment 3. Assume the cost of capital is 23% for a segment. Using the above data, determine the residual income for all three segments and for the Football segment with and without the Rib Pads segment. Shoulder Pads Segment Football Helmets Segment Segment Rib Pads Segment Shoulder Pads Segment Football Segment without Rib Pads Football Segment with Rib Pads