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Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Megamart provides the following information on its two investment centers. Exercise 24-10 (Algo) Computing return on investment and residual income; investing decision LO A1 1. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? 2. Assume a target income of 11% of average assets. Compute residual income for each center. Which center generated the most residual income? 3. Assume the Electronics center is presented with a new investment opportunity that will yield a 15% return on investment. Should the new investment opportunity be accepted? The target return is 11%. Complete this question by entering your answers in the tabs below. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Megamart provides the following information on its two investment centers. Exercise 24-11 (Algo) Computing profit margin and investment turnover LO A2 Compute profit margin and investment turnover for each center. Which center generates more income per dollar of sales? Which center has the better investment turnover? Complete this question by entering your answers in the tabs below. Compute profit margin for each center. Which center generates more net income per dollar of sales? Exercise 24-19 (Algo) Determining transfer prices LO C1 The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a market price of $104 each. Each trailer incurs $45 of variable manufacturing costs. The Trailer division has capacity for 27,000 trailers per year and has fixed costs of $570,000 per year. 1. Assume the Assembly division of Baxter Bicycles wants to buy 4,700 trailers per year from the Trailer division. If the Trailer division can sell all of the trailers it manufactures to outside customers (and has no excess capacity), what price should be used on transfers between divisions? 2. Assume the Trailer division currently only sells 10,000 trailers to outside customers and has excess capacity. The Assembly division wants to buy 4,700 trailers per year from the Trailer division. What is the range of acceptable prices on transfers between divisions