Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Net operating income Minimum required rate of return Division A $12,920,000 $ 3,230, eee 516,800 7.00 Division B $ 28,920,000 $ 7,230,000 $ 462,720 7.5e Division $26,150,000 $ 5,238,888 $ 758,350 14.50% Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 8% rate of return a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity? Complete this question by entering your answers in the tabs below. Req1 Reg 2 Req 3A Reg 38 Compute the margin, turnover, and return on investment (ROI) for each division. (Do not round intermediate calculations Round your answers to 2 decimal places.) Margin Turnover ROI Division A % % Division B % % Division % Reg 2 > Net operating income Minimum required rate of return 516, B6 Zoe 2.50 14.50 Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 8% rate ofr a. If performance is being measured by ROI, which division or divisions will probably accept the opportu b. If performance is being measured by residual income, which division or divisions will probably accept ces Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 34 Req 3B Assume that each division is presented with an investment opportunity that would yield a 8% rate of return. being measured by ROI, which division or divisions will probably accept or reject the opportunity? Division A Division B Division C Reg 2 Reg 30 > Sales Average operating assets Net operating income Minimum required rate of return Division A $12,920,000 $ 3,230,00 $ 516,800 7.ee Division B $ 28,928,000 000 $ 462,720 7.50% Division $26,150,000 $ 5,230,000 $ 758,350 14.504 Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division. 2. Compute the residual income (loss) for each division 3. Assume that each division is presented with an investment opportunity that would yield a 8% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. I performance is being measured by residual income, which division or divisions will probably accept the opportunity? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Red 38 Assume that each division is presented with an investment opportunity that would yield a 8% 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
