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Plz help ;; - , Northeast Division Sales Competitor ' $4,210,000 $2,610,000 Variable costs 7095 of sales 6095 of sales Fixed costs $1,074,000 $ 968,000

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;; - , Northeast Division Sales Competitor ' $4,210,000 $2,610,000 Variable costs 7095 of sales 6095 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 ofinvested 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 likel competitor? y pursue acquisition of the 3-3. Compute the ROI of the competitor as it is now and after the intended upgrade. 3-b. If R01 is used as the basis for evaluation, would Megatronics Corporation likely be in fa vor of the acquisition of the competitor? 4. Calculate the Northeast Division's ROI aer acquisition of competitor but before upgradi ' ng. 5-3. 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 Div S-b. If divisional management is bein ision and the division's residual income if the competitor is acquired. the competitor? 9 evaluated on the basis of residual income, will the Northeast Division likely pursue acquisition of Complete this question by entering .your answers in the tabs below. \\ Req 1 ' Req 2 Req 3A Req 38 5 Calculate the Northeast Division's ROI after acquisition of competitor but before upgrading. (Round your answer to 2 decimal places (i.e., .1234 should be entered as 12.34).) t. _%

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