The president feels very strongly that Mountain Sports should expand operations to a second location. She has even found a prime location in Canmore, Alberta, One of the great things about Canmore is its proximity to the mountains, and its only about 10 minutes away from this beautiful, vibrant and internationally known Banff tourist town. Research indicates that the Canmore market is well suited to both cross-country skis and bikes that competition is fairly limited. $4 The investment in assets (cash, inventory, equipment) required for the new location is Minimum required return on investments 220,000 18% Actual 2019 return on investment of the original location 21% Management has provided the following income statement to the bank manager the expected net Static Budget % Amount Sales in Units 4,096 Sales 512,000 100% Less: Variable Costs: Cost of Goods Sold 217,000 42% Sales Commissions 66,560 13% Total Variable Costs 283,560 55% Contribution Margin 228,440 45% Less: Fixed Costs: Advertising Property Taxes 26,000 9,000 Rent 53,000 Salaries & Wages 109,000 Total Fixed Costs 197,000 Net Operating Income 31,440 Part A: (4 marks) Calculate the following performance measurements for the proposed Canmore expansion: Margin (see Chapter 11 notes) Turnover (use investment in assets in equation) Return on Investment Residual Income Part B: Analysis (4 marks) Explain in your own words using case data. Marks will not be awarded for textbook definitions). a. If management is evaluated based on ROI, will the project be accepted (expansion into Canmore)? Why or why not?