1. Compute return on investment (ROI). 2. Compute residual income. 日 તે FILE HOME INSERT * Calibri h Paste BIU Clipboard Б A1 × - Return on Investment (ROI) and Residual Income - Excel PAGE LAYOUT 11 Α' Α' FORMULAS DATA % REVIEW ? - VIEW A Alignment Number Conditional Format as Cell Cells - Font fx Б Formatting Table▾ Styles▾ Styles Editing X Sign In Adams Corporation evaluates divisional managers based on ROI. Operating A B с D E F 1 Adams Corporation evaluates divisional managers based on ROI. Operating results for the 2 company's Northern Division for last year are given below: 3 4 5 6 7 8 9 10 11 Sales Variable expenses Contribution margin Fixed expenses Net operating income Average divisional operating assets 9,500,000 12 The Northern Division has an opportunity to add a new product line at the beginning of the year as follows: $ 27,000,000 16,200,000 10,800,000 8,805,000 1,995,000 13 14 15 16 Average required investment Net operating income 17 Adams Corporation's minimum acceptable rate of return 18 $ 2,500,000 $ 400,000 15% G
1. Compute return on investment (ROI). 2. Compute residual income. 日 તે FILE HOME INSERT * Calibri h Paste BIU Clipboard Б A1 × - Return on Investment (ROI) and Residual Income - Excel PAGE LAYOUT 11 Α' Α' FORMULAS DATA % REVIEW ? - VIEW A Alignment Number Conditional Format as Cell Cells - Font fx Б Formatting Table▾ Styles▾ Styles Editing X Sign In Adams Corporation evaluates divisional managers based on ROI. Operating A B с D E F 1 Adams Corporation evaluates divisional managers based on ROI. Operating results for the 2 company's Northern Division for last year are given below: 3 4 5 6 7 8 9 10 11 Sales Variable expenses Contribution margin Fixed expenses Net operating income Average divisional operating assets 9,500,000 12 The Northern Division has an opportunity to add a new product line at the beginning of the year as follows: $ 27,000,000 16,200,000 10,800,000 8,805,000 1,995,000 13 14 15 16 Average required investment Net operating income 17 Adams Corporation's minimum acceptable rate of return 18 $ 2,500,000 $ 400,000 15% G
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 9EA: Classify each of the following performance measures into the balanced scorecard perspective to which...
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Step 1: Introduction
VIEWStep 2: Calculation of Northern division ROI for last year
VIEWStep 3: Calculation of Northern division ROI if new product line is
VIEWStep 4: If statement to determine the acceptance or rejection of new product
VIEWStep 5: Calculation of Northern division residual income for last year
VIEWStep 6: Calculation of residual income of new product line is added
VIEWStep 7: If statement to determine the acceptance or rejection of new product based on residual income
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