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Selected sales and operating data for three divisions of different structural engineering firms are given below: Sales Average operating assets Net operating income Minimum
Selected sales and operating data for three divisions of different structural engineering firms are given below: Sales Average operating assets Net operating income Minimum required rate of return Required: Division A $ 15,650,000 $ 3,130,000 Division B $ 35,650,000 $ 7,130,000 $ 719,900 8.00% $ 499,100 8.50% 1. Compute each division's margin, turnover, and return on investment (ROI). 2. Compute each division's residual income (loss). Division C $ 20,520,000 $ 5,130,000 $595,080 11.60% 3. Assume each division is presented with an investment opportunity yielding a 9% rate of return. a. If performance is being measured by ROI, which division or divisions will accept the opportunity? b. If performance is being measured by residual income, which division or divisions will accept the opportunity? Complete this question by entering your answers in the tabs below. Required 11 Required 2 Required 3A Required 38 Compute each division's margin, turnover, and return on investment (ROI). Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Compute each division's margin, turnover, and return on investment (ROI). Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Margin Turnover ROI Division A % % Division B % % Division C % % Required 1 Required 2 > Sales Average operating assets Net operating income Minimum required rate of return Required: Division A $ 15,650,000 $ 3,130,000 $ 719,900 8.00% Division B $ 35,650,000 $ 7,130,000 $ 499,100 8.50% 1. Compute each division's margin, turnover, and return on investment (ROI). 2. Compute each division's residual income (loss). Division C $ 20,520,000 $ 5,130,000 $595,080 11.60% 3. Assume each division is presented with an investment opportunity yielding a 9% rate of return. a. If performance is being measured by ROI, which division or divisions will accept the opportunity b. If performance is being measured by residual income, which division or divisions will accept the Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Compute each division's residual income (loss). Note: Do not round intermediate calculations. Loss amounts should be indicated by a minus sign. Division A Division B Division C Residual income (loss) < Required 1 Required 3A > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 38 Assume each division is presented with an investment opportunity yielding a 9% rate of return. If performance is being measured by ROI, which division or divisions will accept or reject the opportunity? Division A Division B Division C < Required 2 Required 38 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Assume each division is presented with an investment opportunity yielding a 9% rate of return. If performance is being measured by residual income, which division or divisions will accept or reject the opportunity? Division A Division B Division C < Required 3A Required 38 >
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