. Outdoor Sports Company _the entire company, not just the subunit studied above _has an operating income of $125,000 and total assets of $1,100,000. What is the Outdoor S_p_o_r_t_s_ _C_o_m_p_a_n_y_s_ _R_O_I_?_ _2 points

G. Outdoor Sports Company has an opportunity to undertake a new project that costs $275,000 and will earn the company $25,000. If the required rate of return is 10%, should the company take on the new project? Explain.

Req 1 Adrenaline SportsSubunit X Sales Cost of goods sold Gross margin operating expenses Operating income before service departmemnt charges Service department charges (Allocated) Operating income Actual Flexible Budget Flexible Budget Variance (U or F) $430,000.00 $ 400,000.00 $ 30,000.00 Favourable $325,000.00 $ 312,500.00 $ 12,500.00 Unfavourable $ 105,000.00 $ 87,500.00 $ 17,500.00 Favourable $ 38,850.00 $ 37,500.00 $ 1,350.00 Unfavourable Percentage Variance (u or F) 7.50% Favourable 4.00% Unfavourable 20.00% Favourable 3.60% Unfavourable $ 66,150.00 $ $ 37,500.00 $ $ 28,650.00 $ 50,000.00 $ 25,000.00 $ 25,000.00 $ 16,150.00 Favourable 12,500.00 Unfavourable 3,650.00 Favourable 32.30% 50.00% 14.60% Favourable Unfavourable Favourable