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Question 24 (10 points) Share the following complete information about Corp. Magenta and Fuschia division Sales Operatincome Average operating assets Marin Thanover Return on investment

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Question 24 (10 points) Share the following complete information about Corp. Magenta and Fuschia division Sales Operatincome Average operating assets Marin Thanover Return on investment (ROI Magenta 5800,000 56-4.000 B 1695 Fuschia D E $220.000 596 4.5 F Required: a. Complete the missing information for each of the divisions: 6 marks B D $ s Average operating assets for Magenta Division % Margin for Magenta Division Turnover for Magenta Division is times. Sales for Fuschia Division Operating income for Fuschia Division % Return on investment for Fuschia Division b. Assume Magenta Division has a minimum required rate of return of 12%. Based on this information and your calculations above, determine Magenta Division's residual income. 2 marks E $ F c. Assume that Magenta Division has an investment opportunity that would yield a rate of return of 13%. If the division manager's performance is being measured by ROI, is she likely to accept the opportunity? Why or why not? 2 marks

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