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Please answer questions 1-3b. I WILL GIVE LIKE! Selected sales and operating data for three divisions of different structural engineering firms are given as follows:
Please answer questions 1-3b. I WILL GIVE LIKE!
Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division Division B Division c Sales $15,950,000 $ 20,760,000 $ 25,950,000 Average operating assets $ 3,190,000 $ 7,190,000 $ 5,190,000 Net operating income $ 733, 700 $ 373, BB0 $ 752,550 Minimum required rate of return 6.00% 6.500 14.500 Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 7% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunityStep by Step Solution
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