Selected sales and operating data for three divisions of different structural engineering firms are given as follows:

	Division A			Division B			Division C
Sales	$	5,100,000		$	9,100,000		$	8,200,000
Average operating assets	$	1,020,000		$	2,275,000		$	1,640,000
Net operating income	$	214,200		$	746,200		$	118,900
Minimum required rate of return		17.00	%		32.80	%		14.00	%

Required:

1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (Round your answers to 2 decimal places.)

	Margin		Turnover		ROI
Division A		%		times		%
Division B		%		times		%
Division C		%		times		%

2. Compute the residual 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 A		Division B		Division C
Average operating assets
Required rate of return		%		%		%
Required operating income
Actual operating income
Required operating income (above)
Residual income (loss)

3. Assume that each division is presented with an investment opportunity that would yield a 19% rate of return.

a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity?

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