Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need the 4 requirments Selected sales and operating data for three divisions of different structural engineering firms are given as follows Sales Average operating

i need the 4 requirments
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Selected sales and operating data for three divisions of different structural engineering firms are given as follows Sales Average operating assets Net operating income Minimum required rate of return Division A $ 15,950,000 $ 3,190,000 $ 733,700 6.00% Division $ 28,760,000 $ 7,190,000 5 373, 880 6.sex Division $ 25,950,000 $ 5,190,000 5 752,550 14.58% 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 7% 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 Reqz Reg 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 ROI Division A Division B Division % % Selected sales and operating data for three divisions of different structural engineering firms are given as follows Sales Average operating assets Net operating income Minimum required rate of return Division A $ 15,950,000 $ 3,190,000 $ 733, 780 6.00 Division B $ 28,760,000 $ 7,190,000 $ 373,880 6.5ex Division $ 25,950,000 $ 5,190,000 $ 752,550 14.50% Required: 1 Compute the return on investment (RON) 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 7% 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. Reg 1 Reg 2 RegJA Reg 38 Compute the residual income (loss) for each division. (Do not round intermediate calculations. Loss amounts should be indicated by a minus sign.) Division A Division B Division C Residual income (loss) Selected sales and operating data for three divisions of different structural engineering firms are given as follows Sales Average operating assets Net operating income Minimum required rate of return Division A $ 15,950,000 $ 3,190,000 5 733,700 6.00% Division B $ 28,760,000 $ 7,190,000 $ 373,880 6.50% Division $ 25,950,000 $5,198,800 $ 752,550 14.se 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 7% 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. Reg 1 Reg 2 Reg 3A Reg 38 Assume that each division is presented with an investment opportunity that would yield a 7% rate of return. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? Division A Division B Division Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Net operating income Minimum required rate of return Division A $ 15,950,000 $ 3,190,000 $ 733, 700 6.82% Division B $ 28,760,000 57,190,000 $ 373,880 6.50X Division $ 25,950,000 55,190,880 $ 752,550 14. Sex 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 7% 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. Reg 1 Reg 2 Req 3A Req 38 Assume that each division is presented with an investment opportunity that would yield a 7% rate of retum. 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting for Governmental and Nonprofit Entities

Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus

15th Edition

978-0256168723, 77388720, 256168725, 9780077388720, 978-007337960

More Books

Students also viewed these Accounting questions

Question

2. The extent and sources of income inequality.

Answered: 1 week ago

Question

2. Who identifies and evaluates the options?

Answered: 1 week ago