7 (9 points) Brown Company has assembled the following data for one of its divisions for the past year: Division A Average Operating Assets $450,000 Sales $525,000 Operating Expenses $400,000 Minimum Required Rate of Return 18% Required (Round Calculations to Three Decimals): 1. a. Using margin and turnover, calculate the return on investment (ROI). (3 marks) b. List two ways of increasing the ROI. (2 marks) c. Assume that Division A is presented with an investment opportunity that would provide a 20% rate of return. If performance is being measured by return on investment (ROI), will the manager of Division A accept the opportunity? Why or why not? (1 mark) 2. a. Calculate the residual income (RI). (2 marks) b. Identify one disadvantage of using residual income (RI) as a performance measure. (1 mark) Paragraph BIU Answer - Part 1 (a): A A 80 +v