M-City Corporation has two major divisions. It provides the following information for the year 2016: Assembling Division Painting Division Sales revenue $350,000 $450,000 Variable costs $180,000 $220,000 Fixed costs $70,000 $110,000 Total Assets Beginning $350,000 $450,000 Total Assets - Ending $360,000 $500,000 Target rate of return 8% 10% Requirements: Assembling Painting Division Division 1- Operating Income 2- Profit margin ratio 3- Asset turnover ratio 4- Return on Investment (ROI) 5- Residual Income The income statement of Waleed's Optics is provided to you as follows: Sales revenue 3,000 units x $20 per unit $60,000 Less: total variable expenses 3,000 units x $8 per unit 24,000 Total Contribution margin 36,000 Less: total fixed expenses 20,000 Operating income 16,000 Assume average total assets = $ 300,000 and ROI = 8%. Requirements: 1- If Waleed's Optics was a price taker and it's fixed cost can't be changed, how much it has to reduce the total variable expense to achieve it's target profit. 2- If Waleed's Optics was a price setter. Calculate the cost-plus price that it should set for it's product. 3- If Waleed's Optics total capacity is to produce 5,000 units. And Alalamia Optics asked to provide them with 1,500 units for only $14 each. Should Waleed's Optics accept the offer.