Question: Requirement 5: Performance evaluation Assume you are at the end of FYX2 and your division chose to introduce the new product, routers, during the year

Requirement 5: Performance evaluation Assume you are at the end of FYX2 and your division chose to introduce the new product, routers, during the year as described in Requirement 3. Operating results by quarter for FYX2 are included in the project data file in the Operating Results FYX2 worksheet. These operating results reflect revenues and expenses for ethernet repeaters and routers in FYX2 but do not reflect KMB Technologys special order from Requirement 4 (i.e., the data provided reflect FYX2 revenues and expenses for ethernet repeaters and standard routers only). Assume your divisions average investment in operating assets for FYX2 (not including the asset purchase required for the KMB Technology special order) was $84.5 million.

a. What is your divisions return on sales for FYX2 without the KMB Technology special order? (1 point)

b. What is your divisions return on investment for FYX2 without the KMB Technology special order? (1 point)

c. What is your divisions residual income for FYX2 without the KMB Technology special order? (Assume the minimum required rate of return on investment in assets for your division is 11%.) (1 point)

d. Now assume you accepted KMB Technologys special order as described in Requirement 4. Based on your analysis in Requirement 4, how did the special order affect your divisions ROS, ROI, and residual income? ROS (with KMB order) __________ (1 point) ROI (with KMB order) __________ (1 point) Residual income (with KMB order) __________ (1 point)

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