PLEASE INCLUDE FORMULAS

X Calibri 11 A A % Paste B I U Cells Editing Alignment Number Conditional Format as Cell Formatting Table Styles Styles Clipboard Font A1 Adams Corporation evaluates divisional managers based on ROI. Operating E F A B D 1 Adams Corporation evaluates divisional managers based on ROI. Operating results for the 2 company's Northern Division for last year are given below: 3 4 $ 5 6 Sales Variable expenses Contribution margin Fixed expenses Net operating income 27,000,000 16,200,000 10,800,000 8,805,000 1,995,000 7 8 $ 9 10 Average divisional operating assets $ 9,500,000 11 12 The Northern Division has an opportunity to add a new product line at the beginning of the year as follows: 13 Average required investment $ 2,500,000 Net operating income 400,000 14 15 16 17 Adams Corporation's minimum acceptable rate of return 15% 18 19 Assuming the company accepts all projects that meet or exceed the minimum rate of return, compute the following: 20 21 Northern Division ROI for last year 22 23 Northern Division ROI if new product line is added 24 Sheet1 100% READY Attempt(s) Hint Canon Paste BIU- Alignment Number Cells Editing Conditional Format as Cell Formatting Table Styles Styles Clipboard Font A1 : Adams Corporation evaluates divisional managers based on ROI. Operating A D E F B Net operating income 15 $ 400,000 16 17 Adams Corporation's minimum acceptable rate of return 15% 18 19 Assuming the company accepts all projects that meet or exceed the minimum rate of return, compute the following: 20 21 Northern Division ROI for last year 22 23 Northern Division ROI if new product line is added 24 25 Write an IF statement to determine whether the Northern Division 26 manager will ACCEPT or REJECT the new product line based on ROI. 27 28 Northern Division residual income for last year 29 30 Northern Division residual income if the new product line is added 31 32 Write an IF statement to determine whether the Northern Division manager 33 will ACCEPT or REJECT the new product line based on residual income 34 35 36 37 Sheet1 READY + 100% Attempt(s) Hint