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ellook Print Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Division A

ellook Print Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Division A $12,280,000 $ 3,070,000 $ 601,720 Minimum required rate of return 10.00% 10.50% Division B $ 35,350,000 $ 7,070,000 $5,070,000 5 608,950 $ 567,848 11.20% Division C $20,280,000 Net operating income 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 11% 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 Req 2 Req 3A Req 38 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 Turnover Division A % Division B % Division C % RO Req2> 10 Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Net operating incone elock Minimum required rate of return Division A $12,280,000 $3,070,000 $ 601,720 10.00% Pri Required: Division B $35,350,000 $ 7,070,000 600,950 10.50% Division C $20,280,000 s 5,070,000 $ 567,840 11.20 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 11% 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 Req 2 Req JA Req: 38 Compute the residual income (loss) for each division, (Do not round intermediate calculations Loss amounts should be Indicated by a minus sign.) Residual income (loss) Division A Division B Division C Req 3A > Help Save & Exit Check Mc 10 $12,200,000 $3,070,000 Net operating income Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Division A Division B $35,350,000 $ 7,070,000 Division C $20,200,000 $5,070,000 $ 601,720 look Minimum required rate of return 10.00% $ 500,950 10.50% $567,848 11.20% Required: P 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 poss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 17% 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 Req 2 Req 38 Assume that each division is presented with an investment opportunity that would yield a 11% rate of return. If performance is being measured by ROE, which division or divisions will probably accept or reject the opportunity? Division A Division B Division C 2 Submit Check my work Mc 10 10 eBook Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Division $35,350,000 $ 7,978,800 600,950 10.50% Division A $12,280,000 Minimum required rate of return $ 3,070,000 $ 601,720 10.00% $ Net operating incone Division C $20,280,000 $5,070,000 $ 567,840 11.20 P 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 11% 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 Req 2 Req 3A Assume that each division is presented with an investment opportunity that would yield a 11% 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

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