Question 1. The following information relate to SAM Division: Sales $25 Million Net operating income $3 million Operating assets $10 million Required: 1. Compute Margin, Turnover, and return on investment. 2. Compute the residual income if the minimum return on assets is 25% Question 2. Supply the missing data in the following table: Description Sales Operating income Operating assets Return on investment Minimum required rate of return Residual income Division 1 50000 a 20000 Division 2 60000 30000 C 10% 8% 8% d 3000 Question 3: Global Cell Phones (GCP) has developed a cell phone that can be used anywhere in the world (even countries like Japan that have a relatively unique cell phone system). GCP had been receiving complaints about the phone. Therefore, for the past two years, GCP has been test marketing the phones and gathering nonfinancial information related to actual and perceived aspects of the phone's quality. The company expects (given the lack of competition in this market) that increasing the quality of the phone will result in higher sales and, thereby, higher profits. Quality data for 2018 and 2019 include the following: Description 2018 2019 Cell phones produced and shipped 1500 12000 Number of defective units shipped 120 450 Number of customer complaints 180 300 Units reworked before shipping Manufacturing cycle time Average customer-response time Required: 150 990 15 days 30 18 days 27