Schumann Company supplies schools with floor mattresses to use in physical education classes. Schumann has received a special order from a large school district to buy 400 mats at $45 each. Acceptance of the special order will not affect fixed costs but will result in $1,200 of shipping costs. For the first 6 months of 20X2, the company reported the following operating results while operating at 70% capacity. SCHUMANN COMPANY OPERATING RESULTS AT 70% CAPACITY FOR FIRST SIX MONTHS OF 20X2 Sales (100,000 units) $ Cost of Goods Sold Gross Profit Operating Expenses Operating Income $ 7,000,000 4,200,000 2,800,000 2,000,000 800,000 Cost of goods sold was 80% variable and 20% fixed. Operating expenses were 75% variable and 25% fixed. REQUIRED: (1) Prepare an incremental analysis for the special order. Show appropriate supporting calculations. Should Schumann Company accept the special order? Justify your answer. (2) The owner of Mendelssohn's Bagels has recently expanded his business in order to add additional product lines. In addition to bagels, Mendelssohn's Bagels now sells muffins and sandwiches. The company has a minimum rate of return of 16%. MENDELSSOHN'S BAGELS INFORMATION RELATING TO ITS VARIOUS PRODUCTS Bagels Muffins Sandwiches Sales $ 1,000,000 $ 75,000 $ 900,000 Division Income 350,000 15,750 270,000 Invested Assets 1,750,000 105,000 1,500,000 REQUIRED: (1) Compute the return on investment (ROI) for each investment center. Round all percentages to two decimal places (four decimal places in all). Show appropriate supporting calculations. Compute the residual income for each investment center. Round all calculations to the nearest whole dollar. Show appropriate supporting calculations. (2)