1 2 Timtob Co. has two operating divisions with the following information for the most recent fiscal year. 4 5 6 - Total sales Net operating income Average operating assets Division A Division $12,000,000 $14,000,000 $600,000 $560,000 $3,000,000 $7,000,000 The minimum rate of return set by company management is 15%. Required: Compute the ROI of each division stated in terms of margin and turnover. Round to one decimal place. Which division appears to be doing well and why? (6 marks) Division A Division B Margin Required: Compute the ROI of each division stated in terms of margin and turnover. Round to one decimal place. Which division spears to be doing well and why? (6 marks) Division A Division B 15 16 17 Total sales Net Operating Income Margin 19 0 1 Turnover ROI Better division: Reason: . Calculate the residual income of each division. Which division appears to be doing better and why? (6 marks) Answer Sheet Now. Calculate the residual income of each division. Which division appears to be doing better and why? (6 marks) 29b. 30 31 02 23 Division A Division B 35 36 37 Residual income (loss) 38 39 Better division: 40 41 Reason: 2 3 c. Each division has been presented with a new investment opportunity which will generate a return on investment of 17%. Indicate if each division manager would be willing to accept or reject the opportunity if first, they are evaluated using ROI and