Required information (The following information applies to the questions displayed below.] Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Electronics Sporting goods Sales Income $42, 240,000 $3,168,000 23,120,000 2,312,000 Average Invested Assets $17,600,000 13,600,000 1. Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? 2. Assume a target income level of 11% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company? 3. Assume the Electronics department is presented with a new investment opportunity that will yield a 15% return on investment. Should the new investment opportunity be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume a target income level of 11% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company? Investment Center Electronics Sporting Goods Net income $ 3,168,000 S 2,312,000 Target net income Residual income Which department is most efficient at using Electronics assets to generate returns for the company? ZNet Co. is a web-based retail company. The company reports the following for the past year. Sales Operating income Average invested assets $ 6,900,000 2,415,000 11,500,000 The company's CEO believes that sales for next year will increase by 20%, and both profit margin (%) and the level of average invested assets will be the same as for the past year. 1. Compute return on investment for the past year. 2. Compute profit margin for the past year. 3. If the CEO's forecast is correct, what will return on investment equal for next year? 4. If the CEO's forecast is correct, what will investment turnover equal for next year? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 If the CEO's forecast is correct, what will return on investment equal for next year? Return on Investment Choose Numerator: Choose Denominator: Return on Investment Operating income 1 Average invested assets Return on investment Is 11,500,000 ZNet Co. is a web-based retail company. The company reports the following for the past year. Sales Operating income Average invested assets $ 6,900,000 2,415,000 11,500,000 The company's CEO believes that sales for next year will increase by 20%, and both profit margin (%) and the level of average invested assets will be the same as for the past year. 1. Compute return on investment for the past year. 2. Compute profit margin for the past year. 3. If the CEO's forecast is correct, what will return on investment equal for next year? 4. If the CEO's forecast is correct, what will investment turnover equal for next year? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 If the CEO's forecast is correct, what will investment turnover equal for next year? Choose Numerator: Sales Investment Turnover 1 Choose Denominator: 1 Average invested assets S 11,500,000 Investment Turnover Investment turnover