Please answer all three parts to question 1 1A The income from operations and the amount of invested assets in each division of Beck Industries are as follows Income from Operations Invested Assets Retail Division $167,200 $760,000 Commercial Division 74,000 370,000 Internet Division 69,700 410,000 a Compute the return on investment for each division (Round to the nearest whole number ) Division Percent Retail Division Commercial Division Internet Division b Which division is the most profitable per dollar invested 1B The income from operations and the amount of invested assets in each division of Beck Industries are as follows Income from Operations Invested Assets Retail Division $109,200 $520,000 Commercial Division 106,400 560,000 Internet Division 129,600 810,000 Assume that management has established a 12 minimum acceptable return for invested assets a Determine the residual income for each division Retail Division Commercial Division Internet Division Income from operations $109,200 $106,400 $129,600 Minimum acceptable income from operations as a percent of invested assets Residual income $ $ $ b Which division has the most residual income 1C The condensed income statement for the Consumer Products Division of Fargo Industries Inc is as follows (assuming no service department charges) Sales $776,000 Cost of goods sold 349,200 Gross profit $426,800 Administrative expenses 271,600 Income from operations $155,200 The manager of the Consumer Products Division is considering ways to increase the return on investment a Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that $1,940,000 of assets have been invested in the Consumer Products Division Round the investment turnover to one decimal place Profit margin Investment turnover Rate of return on investment b If expenses could be reduced by $38,800 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on investment for the Consumer Products Division Round the investment turnover to one decimal place Profit margin Investment turnover Rate of return on investment

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Please answer all three parts to question 1. 1A. The income from operations and the amount of invested assets in each division of Beck Industries

Please answer all three parts to question 1.

1A. The income from operations and the amount of invested assets in each division of Beck Industries are as follows:

	Income from Operations	Invested Assets
Retail Division	$167,200	$760,000
Commercial Division	74,000	370,000
Internet Division	69,700	410,000

a. Compute the return on investment for each division. (Round to the nearest whole number.)

Division	Percent
Retail Division	%
Commercial Division	%
Internet Division	%

b. Which division is the most profitable per dollar invested?

1B. The income from operations and the amount of invested assets in each division of Beck Industries are as follows:

	Income from Operations	Invested Assets
Retail Division	$109,200	$520,000
Commercial Division	106,400	560,000
Internet Division	129,600	810,000

Assume that management has established a 12% minimum acceptable return for invested assets.

a. Determine the residual income for each division.

	Retail Division	Commercial Division	Internet Division
Income from operations	$109,200	$106,400	$129,600
Minimum acceptable income from operations as a percent of invested assets
Residual income	$	$	$

b. Which division has the most residual income?

1C. The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges):

Sales	$776,000
Cost of goods sold	349,200
Gross profit	$426,800
Administrative expenses	271,600
Income from operations	$155,200

The manager of the Consumer Products Division is considering ways to increase the return on investment.

a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that $1,940,000 of assets have been invested in the Consumer Products Division. Round the investment turnover to one decimal place.

Profit margin	%
Investment turnover
Rate of return on investment	%

b. If expenses could be reduced by $38,800 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on investment for the Consumer Products Division? Round the investment turnover to one decimal place.