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 145 return on investment Should the new investment opportunity be accepted? 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? Return on investment Choose Denominator Choose Numerator Return on investment Return on investment Electronics Sporting Goods Which department is most efficient at using assets to generato returns for the company? Required: Required 2 Required 3 Assume a target income level of 12% of average invested assets. Corripute residual income for each department, which department generated the most residual income for the company? Investment Center Electronics Sporting Goods Net income Target not income Residual income Which department is most officient at using assets to generale returns for the company? Required 1 Required 2 Required 3 Assume the Electronics department is presented with a new investment opportunity that will yield a 14 return on investment. Should the new investment opportunity be accepted? Should the new investment opportunity be accepted?