solve this and show the formulas used
Adams Corporation evaluates divisional managers based on Return on Investment (ROI) and has provided the operating results of the Northern Division from last year. The Controller has asked you to compute the ROI and Residual Income based on data from last year and if the division adds a new product line. Use the information included in the Excel Simulation and the Excel functions described below to complete the task. - Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell, \"=65" was entered, the formula would output the result from cell GS, or 4.00 in this example. - Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: + (plus sign to add), - (minus sign to subtract), * (asterisk sign to multiply), and / (forward slash to divide). From the Excel Simulation below, if in a blank cell \"=GS+GG" was entered, the formula would add the values from those cells and output the result, or 10.00 in this example. If using the other math symbols the result would output an appropriate answer for its function. - SUM function: Allows you to referto multiple cells and adds all the values. You can add individual cell references or ranges to utilize this function. From the Excel Simulation below, ifin a blank cell \"=SUM(GS,GB,G7)\" was entered, the formula would output the result of adding those three separate cells, or 12.00 in this example. Similarly, if in a blank cell \"=SUM(GS:G7)\" was entered, the formula would output the same result of adding those cells, except they are expressed as a range in the formula, and the result would be 12.00 in this example. - IF function: Allows you to test a condition and return a specific value is the result is true and different value if the result is false. The syntax of the IF function is \"=IF(test_condition,value_lf_true,value_if_false)\" and specic considerations need to be made when using this function. The techondJ'tion argument is an evaluation ofthe status of a cell, such as if the value of a cell is greater than, less than, or equal to another number or cell. The value_if_true and value_if_fa/se arguments will return any specific result for each option, such as another cell reference, a value, or text. Throughout the entire equation, if text is being used in the test_ condition, value_if_true, or value_if_ false arguments then the text itself should be entered in quotations so that Excel will recognize the text as a \"string of text" instead of another function. From the Excel Simulation below, if in a blank cell \"=IF(G10>20,\"Tota| cost is High","Tota| cost is low\") was entered, the formula would output the result of the value_if_ true since the techondltion would be result as true, or in this case the text \"Total cost is high\". Excel processes the IF function by separating it out into separate parts. First the test_condition Excel thinks, nd cell 610 and determine if the value is greater than 20. Once Excel determines if the result of that test_ condition is TRUE or FALSE, it will return the value_if_ true or value_if_false. Return on Investment (ROI) and Residual Income - Excel ? - 6 X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Calibri 11 AA % Paste BIU . Alignment Number Conditional Format as Cell Cells Editing Formatting Table Styles Clipboard Font Styles Al X V fx Adams Corporation evaluates divisional managers based on ROI. Operating A B C D E F 1 Adams Corporation evaluates divisional managers based on ROI. Operating results for the company's Northern Division for last year are given below: UAW N Sales $ 27,000,000 Variable expenses 16,200,000 Contribution margin 10,800,000 Fixed expenses 8,805,000 Net operating income $ 1,995,000 9 10 Average divisional operating assets $ 9,500,000 11 12 The Northern Division has an opportunity to add a new product line at the beginning of the year as follows: 13 14 Average required investment 2,500,000 15 Net operating income 400,000 16 17 Adams Corporation's minimum acceptable rate of return 15% 18 19 Compute the following: 20 21 Northern Division ROI for last year23 24 25 26 27 28 29 3O 31 32 33 34 35 cm Northern Division ROI if new product line is added Write an IF statement to determine whether the Northern Division manager will ACCEPT or REJECI' the new product line based on ROI. Northern Division residual income for last year Northern Division residual income if the new product line is added Write an IF statement to determine whether the Northern Division manager will ACCEPT or REJECI' the new product line based on residual income Alanco, Inc. manufactures a variety of products and is currently manufacturing all of its own component parts. An outside supplier has offered to sell one of those components to Alanco. The Controller has asked you to help evaluate this offer to determine if the company should make or buy the component. Use the information included in the Excel Simulation and the Excel functions described below to complete the task. - Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell, \"=C4" was entered, the formula would output the result from cell C4, or 27,000,000 in this example. - Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: + (plus sign to add), - (minus sign to subtract), * (asterisk sign to multiply), and / (fonivard slash to divide). From the Excel Simulation below, if in a blank cell \"=C14+C15" was entered, the formula would add the values from those cells and output the result, or 2,900,000 in this example. If using the other math symbols the result would output an appropriate answer for its function. - IF function: Allows you to test a condition and return a specific value is the result is true and different value if the result is false. The syntax of the IF function is \"=lF(test_condition,value_lf_true,va/ue_if_false)\" and specic considerations need to be made when using this function. The techondition argument is an evaluation ofthe status of a cell, such as if the value ofa cell is greater than, less than, or equal to another number or cell. The value_if_true and value_if_fa/se arguments will return any specific result for each option, such as another cell reference, a value, or text. Throughout the entire equation, if text is being used in the test_ condition, value_if_ true, or value_lf_ false arguments then the text itself should be entered in quotations so that Excel will recognize the text as a \"string of text" instead of another function. From the Excel Simulation below, if in a blank cell \"=|F(C8>1000000,"Net income is good\E 6.) ' C, ' 3. ' 3 Prepareamake or buy analysis- Excel ? E _ x HOME INSERT PAGE LAYOUT FORM ULAS DATA REVIEW Sign In R a 34, I\". 1 IME a sell 3 EE . J Paste 51:11; . {by v A . Alignment Number conditional Format 35 CE\" Cells Editing ' _ _ v v Formatting ' Table ' Styles ' v v Clipboard I?- Font IT- Styles A A1 v 5 " f; Alanco, Inc. manufactures a variety of products and is currently manufacturing all v Alanco, InI. manufactures a variety of products and is currently maunfacturing all of its own component parts. 2 An outside supplier has offered to sell one of those components to Alanco. To evaluate this offer, the following 3 information has been gathered relating to the cost of producing the component internally: 4 5 Direct materials 33 4.00 6 Direct labor 6.00 7 Variable manufacturing overhead 2.00 8 Fixed manufacturing overhead, traceable* 5,00 9 Fixed manufacturing overhead, common but allocated 8.00 10 Total cost $ 25.00 1 1 12 Supplier price $ 21.00 13 14 Units used per year 12,000 15 16 *Fixed manufacturing overhead, traceable is composed of two items: 17 Depreciation of equipment (no resale value) 30% 18 Supervisor salary 70% 19 20 1. Assuming the company has no alternative use for the facilities now being used to produce the 2] component, complete the following analysis to determine if the outside supplier's offer should be accepted. 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Cost of purchasing Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, common Total costs Per Unit Differential Cost Make Buy 12,000 units Make Buy Based on this analysis, write an if statement to determine if Alanco should make or buy the component. Alanco should the component
