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Selected sales and operating data for three divisions of different structural engineering firms are given as follows: DivisionA Division B $6,200,000 $10,200,000 $9,300,000 $1,240,000 5,100,000
Selected sales and operating data for three divisions of different structural engineering firms are given as follows: DivisionA Division B $6,200,000 $10,200,000 $9,300,000 $1,240,000 5,100,000 $1,860,000 $ 328,600 948,600 237,150 Division C Sales Average operating assets Net operating income inimum required rate of return 19.00% 18.60% 16.00% Required 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (Round your Turnover answers to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) Margin Turnover ROI Division A Division B Division C 2. Compute the residual income (loss) for each division. (Loss amounts should be indicated by a minus sign. Round your Required Rate of Return percentage answers to 2 decimal placesi.e., 0.1234 should be entered as 12.34).) Division A Division B Division C Average operating assets Required rate of returr Required operating income Actual operating income Required operating income (above) Residual income (loss)
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