PLEASE SHOW WORK ( CELL REFERENCE IF POSSIBLE)

PLEASE SHOW WORK ( CELL REFERENCE IF POSSIBLE)

ROI and Residual Income JayCo Ltd. is considering expanding their Tennis Division to include a clothing line called TennisWear. Below is information for the last year for the Tennis Division. Tennis Wear Div. with New Line Tennis Division (last year) Sales $ Variable expenses $ Contribution Margin S Fixed Expenses $ Net operating income $ 1,100,000 495,000 605,000 522,585 82,415 Divisional operating assets $ 350,000 JayCo Ltd. had an overall ROI of 30% last year (all divisions). After researching the industry, the following information for the new clothing line was forecasted for the upcoming year: S 600,000 Sales Variable expenses Fixed Expenses 45% of sales 250,000 $ Additional Divisonal op. assets S 200,000 Complete the income statements above: One for the new product line, Tennis Wear, and the other for the Tennis Division as a whole if the new product line is added. **You can assume that JayCo Ltd. can structure costs based on their production for last year. Calculate the Tennis Division's ROI for last year. Calculate the ROI for the new product line, TennisWear. Calculate the Tennis Division's ROI for next year assuming that it performs the same as this year and adds the new product line. Based on ROI, should Jayco add the new clothing line, TennisWear? Explain. Select: (