Selected sales and operating data for three divisions of a multinational structural engineering firm are provided below:

Divisions

	Asia	Europe	North America
Sales	$22,000,000	$24,000,000	$35,000,000
Average operating assets	5,500,000	8,600,000	14,000,000
Net operating income	825,000	700,000	1,120,000
Minimum required rate of return	15%	11%	17%

Required:

1. Compute the ROI for each division using the formula stated in terms of margin tunover. ( Do not round intermediate calculations and round your final answers to the nearest whole percent.)

	ROI
Asia division		%
Europe division		%
North America division		%

2. Compute the RI for each division.

	Residual Income(RI)
Asia division
Europe division
North America division

3. Assume that each division is presented with an investment opportunity that would yield a 14% rate of return.

a. If performance is being measured bt ROI, which division(s) will probably accept the opportunity? Reject the opportunity?

	ROI
Asia division
Europe division
North America division

b. If performance is being measured by RI, which division(s) will probably accept the opportunity? Reject the opportunity?

	RI
Asis division
Europe division
North America division