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 S156,000
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 .
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 ?