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

investment center sales income average invested assets

electronics $40.000.000 $2.880.000 $16.000.000

sporting goods 20.000.000 2.040.000 12.000.000

1.compute return on investment for each department. using return on investment, which department is most efficient at ussing assets to generate returns for the company?

2. assume a target income level of 12% of average invested assets. compute residual income for each deaprtment. 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? explain.