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Megamart provides the following information on its two investment centers. Investment Center Electronics Sporting goods Sales Income $ 42,240,000 $ 3,168,000 23,120,000 2,312,000 Average

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Megamart provides the following information on its two investment centers. Investment Center Electronics Sporting goods Sales Income $ 42,240,000 $ 3,168,000 23,120,000 2,312,000 Average Assets $ 17,600,000 13,600,000 1. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? 2. Assume a target income of 11% of average assets. Compute residual income for each center. Which center generated the most residual income? 3. Assume the Electronics center is presented with a new investment opportunity that will yield a 15% return on investment. Should the new investment opportunity be accepted? The target return is 11%. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? Return on Investment Numerator: /Denominator: Electronics Sporting Goods Which center is most efficient at using assets to generate income? = Required 2 Return on Investment

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