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The Empire Hotel is a full-service hotet in o large city. Empire is organized into three departments that are treated as investment centers. Budget information

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The Empire Hotel is a full-service hotet in o large city. Empire is organized into three departments that are treated as investment centers. Budget information for the coming year for these three departments is shown as foliows. The managers of each of the departments are evaluoted and bonutes ore aworded each year based on ROL. Required a. Compute the ROl for each deparment. Uso the DuPbont method to enalyze the return on sales and copital tumover. Astume the Heatih Spa is considering installing new exercise equipment Upon investigating. the manager of the divsion finds that the equipment would cost $63,000 and that operoting earnings would increose by $11,340 per yeor as a result of the new equipment. b-1. What is the ROI of the investment in the new exercise equipmenc? What impact does the investment in the exercise equipment have on the Heakh Spa's ROI? b-2. Would the manager of the Health Spo be mosvated to undertake such on investment? -1. Compute the residual income for each depariment if the minimum reguired return for the Empire Hotel is 15 percent. 02 What would be the impact of the investmeet in part b on the Health Spo's residual income? Answer is not complete. Complete this question by entering vour answers in the tabs below

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