What is the divisions margin before the new projectwhat is

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Reference no: EM13575489

Ferrel Wares is a division of a major corporation. The following data are for the latest year of operations:

Sales	$10,000,000
Net operating income	$950,000
Average operating assets	$4,000,000
The company's minimum required rate of return	14%

The manager of Eban Wares has an opportunity to add a project with the following characteristics:

Cost of new equipment: $1,200,000

Additional revenues: $3,000,000

Additional expenses: $2,100,000

Required:

What is the division's margin (before the new project)?
What is the division's turnover (before the new project)?
What is the division's return on investment (ROI) (before the new project)?
What is the division's residual income (before the new project)?
What is the division's margin (after the new project is added)?
What is the division's turnover (after the new project is added)?
What is the division's return on investment (ROI) ( after the new project is added)?
What is the division's residual income (after the new project is added)?

Reference no: EM13575489

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