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Check 6 Part 1 of 2 Required information Use the following information for the Exercises below. The following information applies to the questions displayed below)

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Check 6 Part 1 of 2 Required information Use the following information for the Exercises below. 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 an investment center) 142 points Avent Center Electronics Sporting goods Sales Income 541,000,000 $2,624,000 11.600.000 1.000.000 Average Povested Asset $16,400.000 12,400,000 Mint Prim Exercise 24-10 Computing return on investment and residual income; Investing decision LO A1 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 12% 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. 6 Required information Should the new investment opportunity be accepted? Part 1 of 2 Complete this question by entering your answers in the tabs below. 142 port 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? Book Pent Return on Investment Return on Investment Return on Investment Choose Numerator: Choose Denominator 1 Electronics Sporting Goods 1 Which department is most efficient at using assets to generate returns for the company Required 2 > 6 Required information Should the new investment opportunity be accepted? Part 1 of 2 Complete this question by entering your answers in the tabs below. 142 port Required: Required 2 Required) Assume a target Income level of 12% 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? 142 points Complete this question by entering your answers in the tabs below. BOR Required 1 Required 2 Required) 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? Should the new rvestment opportunity to accepted?

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