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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 Net 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 Net operating income Minimum required rate of return Division A $ 12, 640,000 $ 3,160, eee 5 686,720 10.00% Division B $ 35,800,000 $ 7,160,000 $ 688,680 10.50% Division $ 20,640,880 $ 5,160, eee $ 577,920 11.20% Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division 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 retum. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity

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