Prepare sensitivity alaysis on ROI and RI

Exhibit 6 - Divisional Returns Prab is trying to understand the company's profits and where they come from better. She used to calculate only ROI and RI for the company as a whole. Based on the information she has from last year, she calculated an ROI of 13.33% and a Rl of $2,000,000 for the park. She would like you to drill down into these numbers further. Current information: Division Operating Income Average Assets Rides $8,000,000 $75,000,000 Food $2,000,000 $5,000,000 Merchandise $7,000,000 $25,000,000 Accommodation $3,000,000 $45,000,000 She used 12% as her required rate of return but there is a lot of volatility in the market so rate are fluctuating up and down by 2%. She would like to know how the park would look under ROI and Rl if her required rate of return were to change. In addition, both the managers of the Rides and the Accommodation divisions feel their numbers may be unfavourable. They both argue that without rides and a place to stay, no one would buy food or merchandise, and therefore they should be judged by different rates of return