Monfett manufacturing earned operating income last year as shown in the following income
statement:
sales $620,000
cost of goods sold 316,000
gross margin $304,000
selling and administrative expense 219,000
operating income $ 85,000
less: income taxes (at 40%) 34,000
net income $ 51,000
at the beginning of the year, the value of operating assets was $263,000. at the end of the year, the value of operating assets was $336,000. monfett manufacturing requires a minimum rate of return of 15%. total capital employed equal $350,000 and actual cost of capital is 6%.

required:
calculate the following:
1.residual income
2.ev

University hero is considering expanding operations beyond its healthy sandwiches. jim axelrod, vice president of marketing, would like to add a line of smoothies with a similar health emphasis. each smoothie would include two free health supplements such as vitamins, antioxidants, and protein. jim believes smoothie sales should fill the slow mid-afternoon period. adding the line of smoothies would require purchasing additional freezer space, machinery, and equipment. jim provides the following projections of net sales, net income, and average total assets in support of his proposal. sandwichesonly sandwiches and smoothies net sales $ 750,000 $ 1,350,000 net income 120,000 210,000 average total assets 350,000 750,000 return on assetschoose numerator ÷ choose denominator = return on assets÷ = return on assets÷ = profit margin÷ = profit margin÷ = asset turnover÷ = asset turnover÷ = times