Help Saved Save & Exit Submit Submit Homework Use the following information for the Exercises below. The following information applies to the questions displayed below) Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center) Investment Center Electronics Sporting goods Sales Income $41, eee,eee $2,624,600 18,600,000 1,860,800 Average Invested Assets $16,400,000 12,400,000 Exercise 22-10 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 15% return on investment Should the new investment opportunity be accepted? Complete this question by entering your answers in the tabs below. Activate Windows Go to Settings to activate Complete this question by entering your answers in the tabs below. 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 1 Choose Denominator: Choose Numerator: Return on investment Rotum on Investment Electronics Sporting Goods Which department is most officient at using assets to generato returns for the company? Required Required 2 > Activate Wi Saved 2 Homework Help Sau Required information Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 9 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? Investment Center Electronics Sporting Goods Not income Target not income Residual income Which department is most efficient at using assets to generate returns for the company? Activ Go to BRO Required information Complete this question by entering your answers in the tabs below. Required 1 Required 2 Rebuired 3 Assume the Electronics department is presented with a new investment opportunity that will yield a 15% return on investment. Should the new investment opportunity be accepted? Should the new investment opportunity be accepted?
