Check my Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A $15,250,000 Division B 35,250,000 $25,250,000 Sales Average operating assets Net operating income Minimum required rate of return 3,050,000 7,050,000 5,050,000 $655,750 528,750 732,250 9.00 9.50% 14.50% Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 10% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Complete this question by entering your answers in the tabs below. Req 3B Req 3A Req 2 Req 1 Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (Do not round intermediate cal Che 2. Compute the residual income (loss) for each division. 3, Assume that each division is presented with an investment opportunity that would yield a 10% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportun Complete this question by entering your answers in the tabs below. Req 2 Req 3B Req 1 Req 3A Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Margin ROI nover Division A Division EB Division C Req 2 > 2. Compute the residual income (loss) for each division 3. Assume that each divi a. If performance is being measured by ROI, w b. If performance is being ision is presented with an investment opportunity that would yield a 10% rate of return. hich division or divisions will probably accept or reject the opportuni measured by residual income, which division or divisions will probably accept or reject t Complete this question by entering your answers in the tabs below. ed Req 1 Req 2 Req 3A Req 3B ok Compute the residual income (loss) for each division. (Do not round intermediate calculations. Loss amounts should be indicated by a minus sign.) Division A Division BDivision C Residual income (loss Req 3A > Req 1 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 105 a. If performance is being measured by ROI, which division or divisions will probably accept or b. If performance is being measured by residual income, which division or divisions will probabl Complete this question by entering your answers in the tabs below. ed Req 1 Req 3A Req 2 Req 3B Assume that each division is presented with an investment opportunity that would yield a 10% rate is being measured by residual income, which division or divisions will probably accept or reject the ces Division A Division B Division C Req 38 >
