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ch22 pt1, thanks cont... Required information The following information applies to the questions displayed below.) Megamart, o retailer of consumer goods, provides the following information
ch22 pt1, thanks
cont...
Required information The following information applies to the questions displayed below.) Megamart, o retailer of consumer goods, provides the following information on two of its departments (each considered an investment center) Investment Center Electronics Sporting goods Sales Income $39, 140,000 $2.980.000 25,200,000 2,142.000 Average Invested in a 516,600,000 12,600.000 1. Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? 2. Assume a target Income level of 11% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company? 3. Assume the Electronics department is presented with a new investment opportunity that will yield a 15% return on investment. Should the new investment opportunity be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? Return on investment Choose Numerator: 1 Choose Denominator: Return on investment 1 Return on Investment Electronics 1 Sporting Goods Which department is most officient at using assets to generate returns for the company? Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume a target income level of 11% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company? Investment Center Electronics Sporting Goods Net Income Target net income Residual income Which department is most efficient at using assets to generate returns for the company? Required 1 Required 3 > Required information The following information applies to the questions displayed below! Megamart, a retailer of consumer goods, provides the following Information on two of its departments (each considered on Investment centen Investment Center Electronic Sporting Goods ates Inici 539,840,000 $2,900,000 25,300,000 2,142,000 Average Tevented Mosete 516,600,000 12.600.000 Compute profit margin and investment turnover for each department. Which department generates the most net income per dollar of sales? Which department is most efficient at generating sales from average invested assets? Complete this question by entering your answers in the tabs below. Profit Margin Investment Turnover Compute profit margin for each department. Which department generates the most net income per dollar of sales? Profit Margin Choone Numerator: Choose Denominator Profit margin Investment Profit Margin Center Electronics Sporting Goods Which department generates the most not income per dollar of sales? Investment Turnover > MacBook Air Complete this question by entering your answers in the tabs below. Investment Profit Margin Turnover Compute investment turnover for each department. Which department is most efficient at generating sales from average Invested assets? - Investment Turnover Investment Turnover Investment Turnover Choose Numerator: Choose Denominator Investment Center Electronics 1 Sporting Goods Which department is most efficient at generating sales from average invested assets? MacBook Air 80 888 go DI DD Step by Step Solution
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