Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center).

Investment Center	Sales			Income			Average Invested Assets
Electronics	$	40,250,000		$	3,059,000		$	16,100,000
Sporting goods		21,780,000			2,178,000			12,100,000

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 10% 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 14% return on investment. Should the new investment opportunity be accepted?

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 depart assets to generate returns for the company? Return on Investment Choose Numerator: Choose Denominator: Return on Investment Return on Investment Electronics Sporting Goods Which department is most efficient at using assets to generate returns for the company? Required 2 Complete this question by entering your answers in the tab Hint Required 1 Required 2 Required 3 Print Assume a target income level of 10% of average invested assets. Co department generated the most residual income for the company? Electronics Sporting Goods Investment Center Net income Target net income Residual income Which department is most efficient at using assets to generate returns for the company? Rec Required 1 company? 3. Assume the Electronics department is presented with a ne Hint Should the new investment opportunity be accepted? Print Complete this question by entering your answers in the Required 1 Required 2 Required 3 Assume the Electronics department is presented with a new inves investment. Should the new investment opportunity be accepted? Should the new investment opportunity be accepted? Required 2