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Selected sales and operating data for three divisions of different structural engineering firms are given as follows Division A Division B DivisionC $7,000,000 $11,000,000 $10,100,000

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Selected sales and operating data for three divisions of different structural engineering firms are given as follows Division A Division B DivisionC $7,000,000 $11,000,000 $10,100,000 1,750,000 5,500,000 $2,525,000 427,000 1,111,000 $338,350 Sales Average operating assets Net operating income Minimum required rate of return 2000% 2020% 1700% Required: e the return on investment (RO for each d division using the formula stated in terms of margin and turnover. (Round your answers to 2 decimal places.) rgin Division A Division B DivisionC times imes mes 2. Compute the residual i income (loss) for each division. (Loss amounts should be indicated by a minus sign. Round your "Required rate of return" to 2 decimal places,) division (Loss amounts should be indicated by a minus sign. Round your "Required rate of return" to 2 decimal places.) 2. Compute the residual income (loss) for each amounts DivisionB Division A Division C Average operating assets Required rate of retum Required operating income Actual operating income Required operating income (above) Residual income (loss) 3 Assume that each division-presented with an mestnent opportunity that would yeld a 22% rate d i a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? Division A Division B Division O Division A Division B Division C b. 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

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