Return on Investment (ROI) and Residual Income 1. Compute return on investment (ROI) 2. Compute residual income. Calibri 11 Rotum on Investment (ROI) and Residual income - Excel 7 FILE HOME INSERT PAGE LAYOUT FORMULAS DAYA REVIEW VIEW Sign in %6 Paste BT . Alignment Number Conditional Formatas Cell Cells Editing Formatting Table Styles Clipboard Font Styles A1 Adams Corporation evaluates divisional managers based on ROI. Operating B E F 1 Adams Corporation evaluates divisional managers based on ROI. Operating results for the 2 company's Northern Division for last year are given below: 3 Sales 27.000.000 5 Variable expenses 16,200,000 6 Contribution margin 10,800,000 7 Fixed expenses 8,805.000 8 Net operating income $ 1.995.000 D Saved Help Save & E 3 4 s 5 6 7 Sales Variable expenses Contribution margin Fixed expenses Net operating income 27,000,000 16,200,000 10,800,000 8.805.000 1.995.000 8 9 10 Average divisional operating assets $ 9,500,000 11 13 12 The Northern Division has an opportunity to add a new product line at the beginning of the year as follows: Average required investment 2.500.000 Net operating income 400,000 14 15 16 20 17 Adams Corporation's minimum acceptable rate of return 15% 18 19 Assuming the company accepts all projects that meet or exceed the minimum rate of return, compute the following: 21 Northern Division ROI for last year 22 23 Northern Division ROI if new product line is added 24 Sheet1 RE 4 100% READY Attempt(s)