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 $34,800,000 20,100,000 Income $3,306, 10 2,412,000 Average Invested Assets $17, 400, BGD 13,400,000 1. Compute return on investment for each department. Using retum on investment, which department is most efficient at using assets to generate returns for the company 2. Assume a target income level of 12% 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 red From IE - Ch 20, 21 & 22 Required information 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 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? Return on Investment 1 Choose Denominator: Choose Numerator: - Return on Investment Return on Investment Electronics Sporting Goods Which department is most efficient at using assets to generate returns for the company? Required 2 > Ch 20, 21 & 22 Required information 3. Assume the Electronics department is presented with a new investment opportunity that will yield a 15% return on invest 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 12% of average invested assets, Compute residual income for each department, which department generated the most residual income for the company? Sporting Goods Investment Center Electronics Net income Target net income Residual income Which department is most efficient at using assets to generate returns for the company? Required 3 > Ch 20, 21 & 22 Required information 15% return on inve 3. Assume the Electronics department is presented with a new investment opportunity that will yield Should the new investment opportunity be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 return on Assume the Electronics department is presented with a new investment opportunity that will yield investment. Should the new investment opportunity be accepted? Should the new investment opportunity be accepted? Required 2 Electronics Sporting goods 534, 800,000 $3,306, 000 20. 100.000 2.412.000 $17.400.000 13,400,000 Compute profit margin and investment turnover for each department, which department generates the most net income per Sales which department is most efficient at generating sales from average invested assets Complete this question by entering your answers in the tabs below. Profit Margin Investment Turnover Compute profit margin for each department. Which department generates the most net income per dollar of sales Profit Margin Choose Denominator: Choose Numerator: - Investment Center Electronics Profit Margin Profit Margin Sporting Goods Which department generates the most net income per dollar of sales? 2727 Compute profit margin and investment turnover for each department, which department generate the most het in sales? Which department is most efficient at generating sales from average m ed Complete this question by entering your answers in the tabe below Profit Margin Investment Turnover Compute investment turnover for each department, which department is most efficient t invested assets? o Investment Turnover Choose Denominator Choose Numerator: - Investment Tumewer = Investment Tumover Investment Center Electronics Sporting Goods Which department is most efficient at generating sales from average invested assets?