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Required information The following information applies to the questions displayed below) Megamart provides the following information on its two investment centers. Investment Center Sales Income

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Required information The following information applies to the questions displayed below) Megamart provides the following information on its two investment centers. Investment Center Sales Income Average Asset Electronics $ 39,840,000 $ 2,988,000 $ 16,600,000 Sporting goods 25,200,000 2.142,000 12,600,000 1. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? 2. Assume a target income of 11% of average assets. Compute residual income for each center. Which center generated the most residual income? 3. Assume the Electronics center is presented with a new investment opportunity that will yield a 15% return on investment. Should the new investment opportunity be accepted? The target return is 11% Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? Return on investment Denominator Numerator: Return on investment Electronics Intute elow. Required 1 Required 2 Required 3 Compute return on investment for each center. Using return on investment, which center is most efficient at us generate income? 11 Return on Investment Return on Investment Numerator: 7 Denominator: 1 Electronics Sporting Goods Which center is most efficient at using assets to generate income? 11 = Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume a target Income of 11% of average assets. Compute residual income for each center. Which center generated the most residual income? Sporting Goods Investment Center Electronics Income Less target income Residual income Which conter generated the most residual income? ces Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume the Electronics center is presented with a new Investment opportunity that will yield a 15% return on investment. Should the new investment opportunity be accepted? The target return is 11%. should the new investment opportunity be compted?

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