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Superior Motor Company makes electric cars and has only two products, t Simplegreen and the Superiorgreen. To produce Simplegreen, Superior Motor employed assets of $20,000,000
Superior Motor Company makes electric cars and has only two products, t Simplegreen and the Superiorgreen. To produce Simplegreen, Superior Motor employed assets of $20,000,000 at the beginning of the period, and $19,900,000 of assets at the end of the period. Other costs to manufacture the Simplegreen include. tion nd selling.costs total S7,528 200 for the penod In the current penod, Superior Motor produced 10,000 Simplegreen cars using 6 400 setup-hours and 182 200 machine-hours. Superior Motor sold these cars for $13,000 each. The company bases its ROI average invested capital X X Data Table Required Assuming that Superior Motor detines investment as average assets during the perod 3.500 r Direet malerials unil 1400 per setuD-hour Setup Celculate the residual income for the Simpleareen if Superior Motor has a required rete of return of 11% on investments Production 419 per machine hour Requirement 1. Assuming that Superior Motor defines investrment as average assets during the period, what is the return on investment for the Simplegreen division? (Enter the ROl as a percent rounded to one decimal place in the format XX%.) x 1000 ROI % x100 Requirement 2. Calculate the residual income tor the Simplegreen division it Superior Motor has a required rate of return of 11% on investments. (Use parentheses or a minus sign to enter residual losses] RL
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