9.3 number question

3. Award: 20.00 points Three divisions of Jameson Co. report the following sales and operating data: Fitness Spa Athletic Training Wear Sales Services $600,000 $750,000 Average operating assets $400,000 $200,000 $250,000 $100,000 Operating income $ 30,000 $ 37,500 $ 24,000 Minimum required rate of return 10% 12% 10% Required: 1. Compute the ROI for each division, using the formula stated in terms of margin and turnover. ROI Fitness training 15 % Spa services 15 % Athletic wear 24 % 2. Compute the residual income for each division. Fitness Training Spa Services Athletic Wear Residual income $ 10,000 $ 7,500 $ 14,000 3. Assume that each division is presented with an investment opportunity that would yield a rate of return of 17%. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? Fitness Training Accept Spa Services Accept Athletic Wear Reject Show all X IMG-1628.jpg IMG-1625.jpg 2:35 PMb. If performance is being measured by residual income, which division or divisions will probably accept the opportunity? Fitness Training Spa Services Athletic Wear References Worksheet Learning Objective: Learning Objective: 11-04 Compute 11-03 Analyze the residual income, and describe the return on strengths and weaknesses of this investment. method of measuring performance Show all X IMG-1628.jpg IMG-1625.jpg 2:35 PM LO O 2020-04-10