Sales Average operating assets Net operating income Minimum required rate of return Division A $ 12, 640,000 $ 3, 160,000 $ 606,720 10.00% Division B $ 35,800,000 7,160,000 $ 688,600 10.5ex S Division $ 20,640,000 $ 5,160,000 $ 577,920 11.28% 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 Reg 2 Req Reg 38 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.) Margin Turnover ROI Division A Division B Division % % % % 96 96 Sales Average operating assets Net operating income Minimum required rate of return Division A $ 12, 640,000 $ 3,160,000 $ 606,720 10.BOX Division B $ 35,800,000 $ 7,160,000 $ 688,600 10.50% Division $ 20,640,000 $ 5,160,000 $ 577,920 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 divisions will probably accept or reject the opportunity? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Reg 3B 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 B Division C Residual income (loss) Sales Average operating assets Net operating income Minimum required rate of return Division A $ 12,640,000 $ 3,168,000 $ 606,720 10.eex Division B $ 35,800,000 $ 7,160,000 $ 608,609 10.50% Division $ 20,640,000 $ 5,160,000 $ 577,920 11.2ex * 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? COS Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3B Assume that each division is presented with an investment opportunity that would yield a 11% rate of return. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? Division A Division B Division 2 Sales Average operating assets Net operating income Minimum required rate of return Division A $ 12,640,000 $ 3,160,000 $ 606,720 10.00% Division B $ 35,800,000 $ 7,160,000 $ 608,600 10.50 Division $ 29,640,000 $ 5,160,000 577,920 11.29% $ ants eBook Print 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? ferences Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Reg 38 Assume that each division is presented with an investment opportunity that would yield a 11% rate of return. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Division A Division B Division C
