FE LLROL ond Residual Income (Tokito J List lwone - 1, 800 ca 30%, a = = Twwesheett 6,100,000. = ees 2) het ong Dee on dt J ay : _ Investvent + Adit. Inv, * 00,000. £4,000, ae ae wes ,000 = 2,460,000 - 27.64 12,990, 090 ——— 3 ee telies 3) Mo, world wt aduice Diviston 4 wonagtr to odd te to pa hil Sie 4,-Na, Defi — would no? advice him te ad H ) 15) win, bed trig: Lrcomre. ie _ 1,300, 100. Ss ji oes Less DnlouGsI9B0X- 2D) (u202,000) Eig sida Ioroump eo Se GUC IO ie FS tet ~Alitad hiun 2, 760,900. & Les: Inbatthadlgpgen x2) CZ, 000 000) Raid! ance 760,000 b. Dey oe ete paduct hs Ane,Ble ry white Company Sales aoa £.G,009,000 4,220,,00: 24,000,000 1,200,000 770,900. 1,920,000 Net Cferating Jneomt Auer. Operating fosets 3,002,000 000,000 2,000,000 Rehm on Soks ie,peitheyn) 20% 15% __ &i Phcctl Biren aa ig ie ee ee Biot ot Died » = A tee Ie |) Saal 1. fed Cogong 2 2m Meles Reto—an-Sales—= Que _Gpecoting Income Asset lee Soles ——Aerage Yeting Asseh ~ = 1.209.002 = G,000,00.0 —— 6,000,000 3,000109.0 ~\_v = Zo% = ae 3, Return on butstmtul = Peburn on Soles x Asset Turmover — tt =—Of-*Z - re a 40% = ae, Blue Conon alia ess L * a Aut y acai Arrage Oper igaodisels == : = = = G,90,00 eh Reborn on Sates a : Sales ¥, 809, 909 —— By Asset firnovee-= Sales = 4800,000 = 20 Average Spenting. doses 6,000,909 =—— is a2s tet Gperthog Income ~ Sales x “Relurn on Sales Sales = Aercage pein. Asset X__Assed Turnover ie = 8,900,000 3 ae = an, s09 = 24,000,000 8 oid /, 920, 000 ri a hs. 23. Rebun on hwestment = Reburn on Sales * Asef Tormove _ = Bx 3 ss Sy Mea Bivcnictoinentiinds BB Rel on Taveshment co spac bf thr 2 _campenles.. on tL _ Revenve Companies rn Same Jedlsey. clihciiataoad — al i A pete eet F te09,000 500,000 1,000, 000 Tneonse 100, 00050, 000 50000 Liutstnent _______ 500,000 5,900,009 5,000,000 Tse ide 2 paseo ferme (0% e022 057 Iwvestwent Tornover ae oe )) ee ee 20% 12, Ne Return on tnvestwent A Compan — —— 1) Tacone 6s 6 page of Reyoet-= tncame . 100j008 gy Reverie 1,099,000 =a 2) Doestwert tonowrr = Lncame 50000 g.)% Reemve 500,009 == ers toeame J00,e90 ° 3. » Dueshet @ ss 20% ) Rede. Ineo Iwetment 500,000 == 3 Compas —tincome = +902 5,900,000 900 f Hdd Treen 03 ae ie sie Sank } | uso pany re. abs = ee = 4 come 00,000 X Rehm on Lena Io 0.4 3 t 3.) Invert Tvenuer = teame a pecey drm iy o Company - ge 4 1.) Revenve — ticins lipaoer = 5,000,090. 2) tneome = = lovato mes - 7 "e fitecn sn tnt busta} 20s. ee #) be or-bungcr = Poot — Taveshaadph tai oe 4A. - Pricing Nt ow | 1) Due. i excess _capacttye Division Ei hal to ge ly tt 4 from Divisidh_ Be pia ees etialied Transfer Pace = 24 : <2 : 2 New Supplier Price 2 44 . = = ‘ If Division A pachase from Diwision Bu -campony’s sal net lincorm e. should oer dy (P 44-249) x 20,000 se, —_ 20° x 29,000 “408,000 x , + Hence Divinton A heed to ag fom Division —_B. ‘al zs. ———_— = 2) De be no xctss capacity, Pisin B penclite lagen alk gms On the thfermedsate._mocket- froin. Driv'sion. Ba 2 3 clash Thee? = 5g oS i ak : . New Seppe Prict ff: Ere s GX 20,000 = 120000,JZ #45. Tran icing (Fost Diuiston'} mmm \) _ East avd West Compan - trome., Statement fare month tndtd Mte- 21, 204% East Division West Division Tota! Salles 3, 500, 000 2,400,990 5, 209,000 Vaciahle. Cost z : Trofucion Cost_______2, 600,000 - __, #20,000___Zz G09 000 Addition Cost = 1,200,000 - I 200,000 Conhibvhon Margi 790,000 690,000 |, 400,000. Fixed Costs — 300,000. 200,000 500,000 _ Opererting Poh 09, 090 480,000 4090, 990 ___ a) Sell_{,000 — additienal _tatexo precessor fo Weel Pinson © Sales G00, 009 gee oe eSd | trerementa| Costs (489, COO)” et — Openly a :- Prehif TBs Divisio should sell be [,000. additional! icra processor te west Dina | os it _wyuld tesvit 40 addyhowal (25,000 to He avecal} prolit_ot the Company.