Division Division 3 Division o Sales $ 12,690,000 $ 14,805,000 $ 26,437,500 Average operating assets $ 3,172,500 $ 7,402, 500 $ 5,287,500 Net operating income $ 634,500 $ 592,200 $ 846,000 Minimum required rate of return 140 105 161 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 15% 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? ces Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Req 30 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 1 decimal place.) Margin Turnover ROI Division A % Division B % Division % % Res 2 Sales Division A Division B Division c $ 12,690,000 $ 14,805,000 $ 26,437,500 Average operating assets $ 3, 172,500 $ 7,402, 500 $ 5,287,500 Net operating income $ 634,500 $ 592,200 $ 846,000 Minimum required rate of return 145 100 168 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 15% 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 opp Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Req 38 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 B Division C Residual income (loss) Division Division Division c Sales $ 12,690,000 $ 14,805,000 5.26,437,500 Average operating assets $ 3,172,500 $ 7,402, 500 $5,287,500 Net operating income $636,500 $ 592,200 $ 846,000 Minimum required rate of return 100 160 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 15% 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? ht nes Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg Reg 38 Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? Division A Division B Division C Division A Division Division Sales $ 12,690,000 $ 14,805,000 $ 26,437,500 Average operating assets 53,172,500 $ 7,402, 500 $ 5,287,500 Net operating income $ 634,500 $ 592,200 $ 846,000 Minimum required rate of return 145 100 16 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 15% 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 1 Reg 2 Reg 3A Reg 38 Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Division A Division B Division C
