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Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Not operating income Minimum

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Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Not operating income Minimum required rate of return Division A $ 5,990,000 $ 1,180.000 $ 295,000 19.00 Division 3 $ 9,900,000 $ 4,950,000 $ 891,000 18.00x Division $ 9,000,000 $ 1,800,000 $ 202,500 16.00% 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 18% rate of return. af 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. Rep 1 Req2 RegJA Reg 30 Assume that each division is presented with an investment opportunity that would yield a 18% rate of return. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Compute the return on investment (ROI) for each division using the formule stated in terms of morgin and turnover. (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Margin Turnover ROI Division A Division B Division C % X % % % % 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 Residual income (s) Assume that each division is presented with an investment opportunity that would yield a 18% 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 C Assume that each division is presented with an investment opportunity that would yield a 18% 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

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