Return on Investment and Residual Income

1. Compute return on investment (ROI) 2. Compute residual income. All answers must be entered as a formula. Click OK to begin. OK References Return on Investment (ROI) and Residual Income 1. Compute return on investment (ROI) 2. Compute residual income. Return on Investment (ROD and Residual Income-Excel HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Ca bri r u- .10? . . Algnment Nmber Conditional Format as Cel Cells Editing Formatting" Table Styles Cipboard Adams Corporation evaluates divisional managers based on RoI. Operating A1 Adams evaluates divisional managers based on ROL. Operating results for the 2 company's Northern Division for last year are given below: 27,000,000 Variable expenses Contribution margin Flxed expenses Net operating income 10,800,000 10 ge divisional operating assets 12 The Northern Division has an opportunity to add a new product line at the beginning of the year as follows: 13 14 15 16 Average required investment operating income 17 Adams Corporation's minimum acceptable rate of returr 15% 19 Compute the following: Northern Diision ROI for last year 23 Northern Division ROl Ifnew product line is added 24 Sheet1 | Attempt(s) References 8. Award 5.00 points Return on Investment (ROI) and Residual Income 1. Compute return on investment (RO). 2. Compute residual income. Return on Investment (RO) and Residual income Excel Sign In HOME INSERT PAGE LAYOUTFORMULAS DATA REVIEW VW ! A Alignment Number Conditional Format as Cell Cells Editing Formatting Table Styles Clipboard Adams Corporation evalustes divisional managers based on ROL. Operating A1 $ 400,000 15 16 17 Adams Corporation's minimum acceptable rate of return operating income 15% 18 19 Compute the following 21 Northern Division ROI for last year 3 Northern Division ROI if new product line is added 25 Write an IF statement to determine whether the Northern Division 26 manager will ACCEPT or REJECT the new product line based on RO 27 28 Northern Division residual income for last year Northern Division residual income If the new product line is added 32 Write an IF statement to determine whether the Northern Division manager 3 will ACCEPT or REJECT the new product lne based on residual income 34 35 56 . Sheeti Attemptis) References