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Plz help Northeast Division Competitor Sales $4, 210, 000 $2, 610, 000 Variable costs 70% of sales 60% of sales Fixed costs $1, 074, 000

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Northeast Division Competitor Sales $4, 210, 000 $2, 610, 000 Variable costs 70% of sales 60% of sales Fixed costs $1, 074, 000 968, 000 Invested capital $ 900, 000 304, 000 Management has determined that in order to upgrade the competitor to Megatronics' standards, an additional $171,000 of invested capital would be needed. Required: 1. Compute the current ROI of the Northeast Division and the division's ROI if the competitor is acquired. 2. If divisional management is being evaluated on the basis of ROI, will the Northeast Division likely pursue acquisition of the competitor? 3-a. Compute the ROI of the competitor as it is now and after the intended upgrade. 3-b. If ROI is used as the basis for evaluation, would Megatronics Corporation likely be in favor of the acquisition of the competitor? 4. Calculate the Northeast Division's ROI after acquisition of competitor but before upgrading. 5-a. Assume that Megatronics uses residual income to evaluate performance and desires a 10 percent minimum return on invested capital. Compute the current residual income of the Northeast Division and the division's residual income if the competitor is acquired. 5-b. If divisional management is being evaluated on the basis of residual income, will the Northeast Division likely pursue acquisition of the competitor? Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req 3A Req 3B Reg 4 Req 5A Req 5B Assume that Megatronics uses residual income to evaluate performance and desires a 10 percent minimum return on invested capital. Compute the current residual income of the Northeast Division and the division's residual income if the competitor is acquired. Current residual income Residual income if competitor is acquired

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