The following financial statements apply to Vita division, one of three investment centers operated by Nexia Corporation. Nexis Corporation has a desired rate of return of 15%. Nexis Corporation headquarters has NS80 000 of additional operating assets to assign to the investment centers. Vita Division Income Statement for the year ended 30 August 2021 NS 78 695 (50 810) 27 SNS Sales Revenue Cost Of Goods Sold Gross Margin Operating Expenses Selling Expenses Depreciation Expenses Operating Income Non-Operating Expense Loss on sale of Land Net Income (200) (1 125) 25 560 (3 200) 22 360 Below is a Balance Sheet of Vita Division as at 31 August 2021 Assets Canh Account Receivables Merchandise Inventory Equipment Non-Operating Assets Total Assets NS 8089 22 870 33460 77581 8 250 150 250 5 000 58 (00 Liabilities Account payable Notes Payable Stock Holder equity Common Stock Retained Earnings Total Liability & Stock Holder Equity 55000 32 250 150 250 3 1.4 REQUIRED: MARKS 1.1 Should Nexis Corporation use operating income or net income to determine 2 its Return On Investment rate for the Vita investment center? Explain Should Nexis Corporation use operating assets or total assets to determine 1.2 2 Return On Investment for the Vita investment center? Explain 13 Calculate the ROI for Vita Division The manager of the Vita Division has an opportunity to invest the funds at an ROI of 17 percent. The other two divisions have investment opportunities that yield only 16 percent. The manager of Vita Division reject the additional 4 funding. Why would the manager of Vita Division reject the funds under these circumstances? Calculate the residual income from the investment opportunity available to 15 Vita Division and explain how residual income could be used to encourage 4 the manager to accept the additional funds Write a Meme to the Manager of Nexis Corporation and explain to him about the following methods of measuring divisional performance. I. Return on Investment 2. Residual Income 1.6 3. Sales Growth Measure. 25 4. In your Memo, clearly indicate the objective of measuring divisional emme tell the long term hart term pertine