PLEASE ANSWER THE FOLLOWING QUESTIONS

Residual Income 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 $66,500 $350,000 Commercial Division 72,600 330,000 Internet Division 144,900 630,000 Assume that management has established a 8% minimum acceptable return for invested assets. a. Determine the residual income for each division. Retail Division Commercial Division Internet Division Income from operations $66,500 $72,600 $144,900 Minimum acceptable income from operations as a percent of invested assets Residual income $ b. Which division has the most residual income? Commercial Division Internet Division Retail Division Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales $1,284,000 Cost of goods sold 577,800 Gross profit $706,200 Administrative expenses 256,800 Income from operations $449,400 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 $3,210,000 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 $64,200 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 %