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

	Division A	Division B	Division C
Sales	$6,100,000	$9,900,000	$8,700,000
Average operating assets	$1,540,000	$4,500,000	$2,800,000
Net operating income	$291,000	$893,000	$532,000
Minimum required rate of return	17%	20%	19%

Requirement 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. Omit the "%" sign in your response.)

	ROI
Division A	%
Division B	%
Division C	%

Requirement 2:

Compute the residual income for each division. (Leave no cells blank, be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.)

	Division A	Division B	Division C
Residual income	$	$	$

Requirement 3:

Assume that each division is presented with an investment opportunity that would yield a 18% rate of return.

(a)	If performance is being measured by ROI, which division or divisions will probably accept the opportunity? Reject?

Division A	(Click to select)RejectAccept
Division B	(Click to select)AcceptReject
Division C	(Click to select)AcceptReject

(b)	If performance is being measured by residual income, which division or divisions will probably accept the opportunity? Reject?

Division A	(Click to select)RejectAccept
Division B	(Click to select)RejectAccept
Division C	(Click to select)AcceptReject