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Question 6 Mama Bakery Trading is specialized in producing toaster, kettle, and blender since 2020 . Their performance is based on the division's return on
Question 6 Mama Bakery Trading is specialized in producing toaster, kettle, and blender since 2020 . Their performance is based on the division's return on investment (ROI). Data concerning the most recent year appear below: Required: Consider each question below independently. (a) Compute the company's return on investment (ROI). (3 marks) (b) The division manager is convinced that the net operating income will increase by 25%, with no increase in average operating assets. Compute the company's ROI. (5 marks) (c) The chief financial officer of the company believes a more realistic scenario would be RM1,000,000 increase in sales, requiring RM250,000 increase in average operating assets, with a resulting RM650,000 increase in net operating income. Based on this scenario, calculate the company's ROI. (7 marks) (d) Based on original data, calculate the Residual Income (RI) with minimum required rate of return is 20%. (4 marks) (e) Responsibility accounting is an accounting concept used to measure and evaluate the financial performance of the responsibility centers. Discuss and give an example of management accounting tools that commonly will be used in any THREE (3) of responsibility center
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