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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 $ 5,600,000 $ 1,120,000 $ 263, 2ee 16.ee Division $ 9,600,000 $ 3,200,000 $ 835,280 26.1% Division $ 8,780,000 $ 1,740, eee $ 169,650 13.00% 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 18% 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? 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 % % % Req 1 Reg 2 Reg 3A Reg 3B 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) Ren1 Reg 3A > Assume that each division is presented with an investment opportunity that would yield a 18% 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 Assume that each division is presented with an investment opportunity that would yield a 18% 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 C

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