s Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Net operating income Minimum requred rate of return Division A Division B Division C 35,800,000 $ 20,640,000 7,160,000 5,160,000 606,720$608,600 577,920 11.20 $3,160,000 10.00% 10.50 Required: 1. Compute the return on investment (ROl) for each division using the formula stated in terms of margin and turnover 2. Compute the residual income (loss) for each division ook sume that each division is presented with an investment opportunity that would yield a 11% rate of return rint a. If performance is being measured by ROI which divis b. If performance is being measured by residual income, opportunity? ion or divisions will probably accept or reject the opportunity? which division or dlivisions will probably accept or reject the rences Complete this question by entering your answers in the tabs below Req 1 Req 2 Req 3A Req 3B Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round your answers to 2 decimal places.) ROI Margin unover Division A Division E Division C Req 2 > Selected sales and operating data for three divisions of different structural engineering firms are given as follows Sales Average operating assets Net operating income Minimum required rate of return $12,640,000 35,800,000 20,640,000 $3,160,000 7,160,000 5,160,000 606. 720 608, 500 577,920 10.001 10.50 11.20% Required 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 11% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or glivisions will probably accept or reject the opportunity? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 38 Compute the residual income (loss) for each division. (Do not round intermediate calculations. Loss amounts should be indicated by a minus sign.) Division A Division 8 Division C Residual income (loss) K Req 1 Req 3A> Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Net operating income Minimum requred rate of return Division A Division B Division C $12,640,000 $ 3,160,000 $ 606,720 608,600$577,92 35,800,000 $20,640,000 $ 7,160,000 5,160,000 10.00 10.50 11.208 Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover 2. Compute the residual income (loss) for each division. 3, Assume that each division is presented with an investment opportunity that would yield a 11% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req Req 3B Assume that each division is presented with an investment opportunity that would yield a 11% rate of return. I is being measured by ROI, which division or divisions will probably accept or reject the oppprtunity? f performance Division A Division B Division C KReq 2 Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Sales Average operating assets Net operating income Minimum required rate of return Division B Division c $12,640,000 35,800,000 20,640,000 s 3,160,000 7,160,000 5,160,000 606,20 608,600 577,920 10.00% 10.50 11.20 Required: 1. Compute the return on investment (ROl) for each division using the formula stated in terms of 2. Compute the residual income (loss) for each division. 3 Assume that each division is presented with an investment opportunity that would yield a 11% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or re b. If performance is being measured by residual income, which division or divisions will probably accept or rej opportunity? ces Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Assume that each division is presented with an investment opportunity that would yield a 11% rate of return. ir performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Division A Division B Division C
