Question 24 (10 points) You have the following incomplete information about Shade Corp.'s Indigo and Cobalt divisions Cobalt Sales Operating income Average operating assets Margin Turnover Return on investment (ROI) Indigo $875,000 $70,000 A B E $150,000 3 6 F 14% Required: a. Complete the missing information for each of the divisions: 6 marks A $ Average operating assets for Indigo Division B % Margin for Indigo Division Turnover for Indigo Division is times. D $ Sales for Cobalt Division E $ Operating income for Cobalt Division F % Return on investment for Cobalt Division b. Assume Indigo Division has a minimum required rate of return of 12%. Based on this information and your calculations above, determine Indigo Division's residual income. 2 marks C. Assume that Indigo 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