Adams Corporation evaluates divistonal managers based on Return on Investment (ROI) and nas provided the operating results of the Northern DIVision from last year. The Controller has asked you to compute the ROI and Residual Income based on data from last year and If the alvision adds a new product iine. Use the Information Included in the Excel Simulation and the Excel functions described below to complete the task. Cell Reference: Allows you to refer to data from anotner cell in the worksheet. From the Excel Simulation below, If in a blank cell, "G5" was entered, the formula would output tne result from cell G5, or 4.00 In this example. • Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: - (plus sign to add), - (minus sign to subtract). * (asterisk sign to multiply), and / (forward slash to divide). From the Excel Simulation below, If in a blank cell "G5-G6" was entered, the formula would add the values from those cells and output the result, or 10.00 in this example. If using the other math symbols the result would output an appropriate answer for Its function. • SUM function: Allows you to refer to muitiple cells and adds all the values. You can ada Individual cell references or ranges to utilie tnis function. From the Excel Simulation below, if in a blank cell SUMIG5,G6,G7)" was entered, the formula would output the result of adding those three separate cells, or 12.00 in this example. Simlariy. If in a blank cell SUMIGS:G7)" was entered, the formula would output the same result of adding those cells, except they are expressed as a range In the formula, and the result would be 12.00 In this example. • IF function: Allows you to test a conaition and return a specific value is the result is true and different value if the result is faise. The syntax of the IF function is "IF(test.condition,value_L_true,value_Ltaise" and specific considerations need to be made when using tnis function. The testcondition argument is an evaluation of the status of a cell, such as if the value of a cell is greater than, less than, or equal to another number or cell. The value_Ltrue and value_feise arguments will return any specific result for each optlon, such as anotner cell reference. a value, or text. Throughout the entire equation, Iftext is being used in the test condition, value_Ltrue, or value_faise arguments then the text itseif should be entered in quotations so that Excel will recognize the text as a "string of text" Instead of another function. From the Excel Simulation below, If in a blank cell "F(G10>20."Total cost is High","Total cost is low") was entered, the formula would output the result of the value_true since the test.condition would be result as true, or In this case the text "Total cost is high". Excel processes the IF function by separating it out Into separate parts. First the test_condition - Excel thinks, nd cell G10 and determine if the value is greater than 20. Once Excel determines if the result of that test.condition is TRUE or FALSE, It will return the value_true or value_faise. Rerturn on Investment (ROI) and Resical Income - Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign in Calbri 11 Alignment Number Conditional Format as Cell Formatting Table Styles Paste BIU- Cells Clipboard Font Styles A1 Adams Corporatian evaluates divisional managers based on ROI. Operating company's Northern Division for last year are given below 27.000,000 16,200.000 10,00.000 Saes Variable penses Cuntributien margin Fied expenses Net operaing income 10 Average divisianal perating t 2 The Northern Dvisjen has an opportunity to add a new propuct he at the beginning of the yrat as fotons Average reued investment Net operting income 2.500,000 400,000 Adams Corporation's minimum aceptable rate of return Compule the fullwing 1 Northern Divisien ROI for last year Northern Divslen ROI It new praduct ne is aled 24 3 we anstatement to determine whether the Northen Divsion 20 manager will CCEPT ar RECT the new produet ine baed on RO n Northern Dison resitual income for last yrar 29 10 Northern Dsien resitual income it the nen product line is de wne anFstanement to desermine whether the Northern Dieskon maner will ACCEPT or REKCT the new product ine based on residual income Sheeti READY 10% Attempt(s) Hine Show Me
Adams Corporation evaluates divistonal managers based on Return on Investment (ROI) and nas provided the operating results of the Northern DIVision from last year. The Controller has asked you to compute the ROI and Residual Income based on data from last year and If the alvision adds a new product iine. Use the Information Included in the Excel Simulation and the Excel functions described below to complete the task. Cell Reference: Allows you to refer to data from anotner cell in the worksheet. From the Excel Simulation below, If in a blank cell, "G5" was entered, the formula would output tne result from cell G5, or 4.00 In this example. • Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: - (plus sign to add), - (minus sign to subtract). * (asterisk sign to multiply), and / (forward slash to divide). From the Excel Simulation below, If in a blank cell "G5-G6" was entered, the formula would add the values from those cells and output the result, or 10.00 in this example. If using the other math symbols the result would output an appropriate answer for Its function. • SUM function: Allows you to refer to muitiple cells and adds all the values. You can ada Individual cell references or ranges to utilie tnis function. From the Excel Simulation below, if in a blank cell SUMIG5,G6,G7)" was entered, the formula would output the result of adding those three separate cells, or 12.00 in this example. Simlariy. If in a blank cell SUMIGS:G7)" was entered, the formula would output the same result of adding those cells, except they are expressed as a range In the formula, and the result would be 12.00 In this example. • IF function: Allows you to test a conaition and return a specific value is the result is true and different value if the result is faise. The syntax of the IF function is "IF(test.condition,value_L_true,value_Ltaise" and specific considerations need to be made when using tnis function. The testcondition argument is an evaluation of the status of a cell, such as if the value of a cell is greater than, less than, or equal to another number or cell. The value_Ltrue and value_feise arguments will return any specific result for each optlon, such as anotner cell reference. a value, or text. Throughout the entire equation, Iftext is being used in the test condition, value_Ltrue, or value_faise arguments then the text itseif should be entered in quotations so that Excel will recognize the text as a "string of text" Instead of another function. From the Excel Simulation below, If in a blank cell "F(G10>20."Total cost is High","Total cost is low") was entered, the formula would output the result of the value_true since the test.condition would be result as true, or In this case the text "Total cost is high". Excel processes the IF function by separating it out Into separate parts. First the test_condition - Excel thinks, nd cell G10 and determine if the value is greater than 20. Once Excel determines if the result of that test.condition is TRUE or FALSE, It will return the value_true or value_faise. Rerturn on Investment (ROI) and Resical Income - Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign in Calbri 11 Alignment Number Conditional Format as Cell Formatting Table Styles Paste BIU- Cells Clipboard Font Styles A1 Adams Corporatian evaluates divisional managers based on ROI. Operating company's Northern Division for last year are given below 27.000,000 16,200.000 10,00.000 Saes Variable penses Cuntributien margin Fied expenses Net operaing income 10 Average divisianal perating t 2 The Northern Dvisjen has an opportunity to add a new propuct he at the beginning of the yrat as fotons Average reued investment Net operting income 2.500,000 400,000 Adams Corporation's minimum aceptable rate of return Compule the fullwing 1 Northern Divisien ROI for last year Northern Divslen ROI It new praduct ne is aled 24 3 we anstatement to determine whether the Northen Divsion 20 manager will CCEPT ar RECT the new produet ine baed on RO n Northern Dison resitual income for last yrar 29 10 Northern Dsien resitual income it the nen product line is de wne anFstanement to desermine whether the Northern Dieskon maner will ACCEPT or REKCT the new product ine based on residual income Sheeti READY 10% Attempt(s) Hine Show Me
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter3: Data Visualization
Section: Chapter Questions
Problem 17P: The Northwest regional manager of Logan Outdoor Equipment Company has conducted a study to determine...
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