Sales revenues, Fibers $ 870,000 Sales revenues, Feedstocks $ 820,000 Variable expenses, Fibers $ 426,000 Variable expenses, Feedstocks $ 344,000 Traceable fixed expenses, Fibers $ 148,000 Traceable fixed expenses, Feedstocks $ 156,000 Common fixed expenses totaled $ 314,000 and were allocated as follows: $ 129,000 to the Fibers business segment and $ 185,000 to the Feedstocks business segment. Required: Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts. Question 2. Question:( TCO D) Wryski Corporation had net operating income of $ 150,000 and average operating assets of $ 500,000. The company requires a return on investment of 19 %. Required:
i. Calculate the company ' s current return on investment and residual income. ii. The company is investigating an investment of $ 400,000 in a project that will generate annual net operating income of $ 78,000. What is the ROI of the project? What is the residual income of the project? Should the company invest in this project? ii. Return on investment = Net operating income / Average operating assets = $ 78,000 / $ 400,000 = 19.5 % Question 3. Question:( TCO D) Tjelmeland Corporation is considering dropping product S85U. Data from the company ' s accounting system appear below. Sales $ 360,000 Variable Expenses $ 158,000 Fixed Manufacturing Expenses $ 119,000 Fixed Selling and Administrative Expenses $ 94,000 All fixed expenses of the company are fully allocated to products in the company ' s accounting system. Further investigation has revealed that $ 55,000 of the fixed manufacturing expenses and $ 71,000 of the fixed selling and administrative expenses are avoidable if product S85U is discontinued.