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North American Beverage Corporation is a highly innovative pacesetter in the changing soft drink industry. Following is financial data for each of the corporation three

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North American Beverage Corporation is a highly innovative pacesetter in the changing soft drink industry. Following is financial data for each of the corporation three divisions. Sales Average operating assets Net operating income Minimum required rate of return Division A $ 7,200, eee $ 1,440,000 453,600 26.ee Division B $ 11,200,000 $ 5,600, eee $ 1,153,600 20.68% Division $ 10,300,eee $ 2,060, eee $ 365,650 23.00% 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 25% 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. Req1 Reg 2 Reg 3A Reg 3 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 C % % 96 Reg Req 2 > Reg 3A Reg 3B Reg 1 Reg 2 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) Reg 1 Reg 2 Reg 3A Reg 3B Assume that each division is presented with an investment opportunity that would yield a 25% 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 C Reg 1 Reg 2 Reg 3A Reg 3B Assume that each division is presented with an investment opportunity that would yield a 25% rate of return. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Division A Division B Division

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