Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me answer with the numbers in the problem thank you! Selected sales and operating data for three divisions of different structural engineering firms

please help me answer with the numbers in the problem thank you!
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Net operating income Minimum required rate of return Division A $ 12,270,000 $ 3,067,500 5 613,500 140 Division B $. 14,315,000 $ 7,157,500 $ 572,600 101 Division $ 25,562,500 $ 5,112,500 $ 818,000 161 12 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 15% 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? es Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg Reg 38 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 1 decimal place.) Margin Turnover ROI % Division A Division B Division C % % % % % Reg 2 > Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division Division c Sales $ 12,270,000 $ 14,315,000 $ 25,562,500 Average operating anseta $ 3,067,500 $ 7,157,500 $ 5,112,500 Net operating inconn $ 613,500 $ 572,600 $ 818,000 Minimum required rate of return 141 100 166 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 floss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 15% 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. Reg 1 Reg 2 Req3A Reg 38 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 Division Resident income (lon) Selected sales and operating data for three divisions of different structural engineering firms are given as follows: 109 Division Division 3 Division C Sales $ 12,270,000 $ 14,315,000 $ 25,562,500 Average operating asseta $ 3,067,500 $ 7,157,500 $ 5,112,500 Net operating income $ 613,500 $ 572,600 $ 818,000 Minimum required rate of return 140 164 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 15% 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 the tabs below. Reg 1 Reg 2 Reg 3A Req 38 Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? Division Division B Dision Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Met operating income Minimum required rate of return Division A $ 12,270,000 $ 3,067,500 5 613,500 141 Division $ 14,315,000 $ 7,157,500 $ 572,600 104 Division $ 25,562,500 $ 5,112,500 $818,000 16% 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 15% rate of retum. 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. Reg 1 Req2 Req 3A Reg 38 Assume that each division is presented with an investment opportunity that would yield a 15% 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cash, Corruption And Economic Development

Authors: Vikram Vashisht

1st Edition

1032096888, 9781032096889

More Books

Students also viewed these Accounting questions