Megamart, a retailer of consumer goods, provides the following information on two of its (each considered an investment center). Net Average Investment Center Sales Income Invested Assets S 10,700,000 S 693,500 S 3,650,000 846,000 4,700,000 Electronics Sporting goods 7,700,000 1-a. Compute return on investment for each department Return on Investment Choose Numerator: Choose Return on Investment Return on investment Electronics Sporting Goods 1-b. Using return on investment, which department is most efficient at using assets to generate returns for the company? Electronics O Sporting goods 2-a. Assume a target income level of 12.5% of average invested assets. Compute residual income for Investment Center Electronics Sporting Goods Net income Target net income Residual income 2-b. Which department generated the most residual income for the company? Sporting goods Electronics 3. Assume the Electronias department is presented with a new investment opportunity that will yield a 18% return on investment. Should the new investment opportunity be accepted? Yes, the new investment opportunity should be accepted O No, the new investment opportunity should not be accepted