Required:

Compute the margin, turnover, and return on investment $($ROI$)$ for each division.

Compute the residual income $($loss$)$ for each division.

Assume that each division is presented with an investment opportunity that would yield a $8\%$ rate of return.

a$.$ If performance is being measured by ROI, which division or divisions will probably accept the opportunity?

b$.$ If performance is being measured by residual income, which division or divisions will probably accept the opportunity?

Complete this question by entering your answers in the tabs below.

Req $2$

Req $3$B

Compute the residual income $($loss$)$ for each division. $($Do not round intermediate calculations. Loss amounts should be

indicated by a minus sign.$)$