Required Problem: You must complete this problem. The Cashmere Company's segmented income statement is given below (assume Segment Margin is equivalent to Net Operating Income): Total Division 1 Division 2 Sales 500,000 300,000 200,000 Variable Expenses 345,000 225,000 120,000 Contribution Margin 155,000 75,000 80,000 Traceable Fixed Exp. 95,000 55,000 40,000 Segment Margin 60,000 20,000 40,000 Common Fixed Expenses 25,000 Net Income 35,000 Average Operating Assets 250,000 400,000 Minimum Acceptable ROI 7% 7% Requirements: (Be sure to clearly mark your answers and show your work if you want partial credit.) 1. Calculate Breakeven in Sales Dollars for the Total Company, Division 1, and Division 2. (6 pts) 2. Refer to the original information. If sales in Division 2 increase by $30,000 and traceable fixed costs increase by $7,000, by how much will overall company net income increase/(decrease)? (3 pts) 3. Refer to the original information. Assume that in May, sales in Division 1 are expected to remain at $300,000 but sales in Division 2 are expected to decline to $150,000. What is the new weighted average CM Ratio? (3 pts) 4. Refer to the original information. Compute Division 1's ROI. (3 pts) 5. Refer to the original information. Compute Division 2's Residual Income. (3 pts)