Required information Use the following information for the Exercises below. [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 Exercise 22-10 Computing return on investment and residual income; Investing decision LO A1 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. 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 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? Choose Numerator: Return on investment Choose Denominator: Return on investment Return on Investment nces Electronics Sporting Goods 1 Which department is most efficient at using assets to generato returns for the company? 0 0 Compute profit margin and investment turnover for each department. Which department generates the most net income per dollar of 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 Profit Margin Profit Margin Electronics cos Choose Numerator: 1. Choose Denominator Investment 1 Conter 1 Sporting Goods Which dopartment generates the most not income por dollar of sales? Prett Me Investment Turnover > Required information Use the following information for the Exercises below. [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 Exercise 22-10 Computing return on investment and residual income; Investing decision LO A1 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. 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 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? Choose Numerator: Return on investment Choose Denominator: Return on investment Return on Investment nces Electronics Sporting Goods 1 Which department is most efficient at using assets to generato returns for the company? 0 0 Compute profit margin and investment turnover for each department. Which department generates the most net income per dollar of 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 Profit Margin Profit Margin Electronics cos Choose Numerator: 1. Choose Denominator Investment 1 Conter 1 Sporting Goods Which dopartment generates the most not income por dollar of sales? Prett Me Investment Turnover >
