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Managers in the various divisions at the MegaAuto Company have their performance measured using financial performance measures. For Return on Investment (ROI) measures, the manager earns bonuses based on the increase in ROI over the company average. MegaAuto is a large retail and services company offering products and services. One division of the company called MegaTune offers motor vehicle repair services. The Division has been running very successfully however it only operates in the Eastern States of Australia. The following information is forecast for the current MegaTune business division for the coming year: Profit percentage (Return on Sales): 55% Sales revenue: $40000000 Average capital employed $68750000 Additional information: MegaAuto are considering expanding the business on South Australian and Western Australlan sites to become a national operation. The estimated financia outcomes for the coming year of the new expansion would be as follows: Further additional information: In adelt on to the information given in Q1\} ano Q2) for the Expanded MegaTune Business, if the profic of the MegaTure business was subject to tax at the rate of 25% and the company has a We ghted Alerage Cost of Capta (WACC) of 16% and due to good re ationsh os wi th tre supo ers. Megatune has an sverget of eurrent liablities Creotors of 510000000. Required: Managers in the various divisions at the MegaAuto Company have their performance measured using financial performance measures. For Return on Investment (ROI) measures, the manager earns bonuses based on the increase in ROI over the company average. MegaAuto is a large retail and services company offering products and services. One division of the company called MegaTune offers motor vehicle repair services. The Division has been running very successfully however it only operates in the Eastern States of Australia. The following information is forecast for the current MegaTune business division for the coming year: Profit percentage (Return on Sales): 55% Sales revenue: $40000000 Average capital employed $68750000 Additional information: MegaAuto are considering expanding the business on South Australian and Western Australlan sites to become a national operation. The estimated financia outcomes for the coming year of the new expansion would be as follows: Further additional information: In adelt on to the information given in Q1\} ano Q2) for the Expanded MegaTune Business, if the profic of the MegaTure business was subject to tax at the rate of 25% and the company has a We ghted Alerage Cost of Capta (WACC) of 16% and due to good re ationsh os wi th tre supo ers. Megatune has an sverget of eurrent liablities Creotors of 510000000. Required

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