Exercise $11-14($Algo$)$ Evaluating New Investments Using Return on Investment

$($ROI$)$ and Residual Income $[$LO$11-1,$ LO$11-2]$

Selected sales and operating data for three divisions of different structural engineering firms are given below:

Required:

Compute each division's margin, turnover, and return on investment $($ROI$).$

Compute each division's residual income $($loss$).$

Assume each division is presented with an investment opportunity yielding a $10\%$ rate of return.

a$.$ If performance is being measured by ROI, which division or divisions will accept the opportunity?

b$.$ If performance is being measured by residual income, which division or divisions will accept the

opportunity?

Complete this question by entering your answers in the tabs below.

Required $3$B

Compute each division's margin, turnover, and return on investment $($ROI$).$

Note: Do not round intermediate calculations. Round your answers to $2$ decimal places.