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Ten years ago, Toni and Mandy purchased a group of boutique bakery shops located in several cities. Based on the current executive compensation plan, managers

Ten years ago, Toni and Mandy purchased a group of boutique bakery shops located in several cities. Based on the current executive compensation plan, managers can earn a bonus based on meeting the budgeted profit target. At this point, Toni is proposing a change in the executive compensation to have bonuses computed based on residual income. To aid her in this analysis Toni asked the accountant to summarize key financial results from the prior year as shown below:

Wrentham

Milford

Franklin

Portland

Stamford

Revenue

$800,000

$990,000

$397,500

$900,000

$450,000

Net operating income

$40,000

$59,400

$31,800

$49,500

$31,500

Average operating assets

$500,000

$550,000

$265,000

$600,000

$225,000

Stockholders equity

$425,000

$467,500

$225,250

$510,000

$191,250

Residual income (loss)

($10,000)

Required: Answer each of the following questions associated with the information provided. In answering the numerical questions round your final answer to at least two decimal points. For example, a margin of 10.4115% would be 10.41%. A turnover of 3.3621 would be 3.36.

6.

Wrentham Margin is

7.

Wrentham Turnover is

8.

Milford Margin is

9.

Milford Turnover is

10.

Franklin Margin is

11.

Franklin Turnover is

12.

Franklin Residual Income is

13.

Portland Margin is

14.

Portland Residual Income is

15.

Stamford Margin is

16.

Stamford Turnover is

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