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Mountville's results for the year and the potential new investment are shown below. The new investment is approved and expected to create sales of

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Mountville's results for the year and the potential new investment are shown below. The new investment is approved and expected to create sales of $100,000, a contribution margin of 70% of sales and added fixed costs of $40,000. If the manager gets a bonus of 10% of Residual income, what is the change in bonus expected for next year expected to be (assume rest of firm operates same as last year)? Express as a whole number. Sales Variable expenses Fixed expenses $1,000,000 $300,000 $500,000 Average operating assets $800,000 Minimum rate of return 6% New investment $268,000

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