Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Salen Average operating assets Net operating income Minimum required rate of return Division $ 12,090,000 $ 3,022,500 $ 604,500 145 Division $ 14,105,000 $ 7,052,500 $ 564,200 10 Division C $. 25,187,500 $ 5,037.500 $ 806,000 16 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 15% rate of return. a. If 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. Reg 1 Reg 2 Req 3A Req 38 Compute the residual income (loss) for each division. (Do not round Intermediate calculations. Loss amounts should be indicated by a minus sign.) Division A Dlvision B Division Residual income (los) or $ Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division Division c Sales $ 12,090,000 $ 14,105,000 $ 25,187,500 Average operating assets $ 3,022,500 $7,052,500 $ 5,037,500 Nat operating income $ 604,500 $ 564,200 $ 806,000 Minimum required rate of return 105 168 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 15% rate of return. a. If 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. Reg 1 Reg 2 Req 3A Reg 38 Assume that each division is presented with an investment opportunity that would yield a 15% 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 Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division Division B Division c Sales $ 12,090,000 $ 14,105,000 $ 25,187,500 Average operating annet $ 3,022,500 $ 7,052,500 $ 5,037,500 Net operating income $ 604,500 $ 564,200 $ 806,000 Minimum required rate of return 140 100 168 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 15% rate of return. a. If 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 opportunit Complete this question by entering your answers in the tabs below. Reg 1 Req2 Req 3A Reg 38 Assume that each division is presented with an investment opportunity that would yleld a 15% 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 C Het Reg 3A
