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Selected sales and operating data for three divisions of different structural engineering firms are given below: Net operating income Division A $ 15,400,000 Division
Selected sales and operating data for three divisions of different structural engineering firms are given below: Net operating income Division A $ 15,400,000 Division B $ 28,320,000 $ 3,080,000 $ 7,080,000 $ 693,000 7.00% $ 396,480 7.50% Division C $ 25,400,000 $ 5,080,000 $ 736,600 14.50% Sales Average operating assets Minimum required rate of return Required: 1. Compute each division's margin, turnover, and return on investment (ROI). 2. Compute each division's residual income (loss). 3. Assume each division is presented with an investment opportunity yielding a 8% rate of return. a. If performance is being measured by ROI, which division or divisions will accept the opportunity? b. If performance is being measured by residual income, which division or divisions will accept the opportunity? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B Compute each division's margin, turnover, and return on investment (ROI). Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Margin Turnover ROI Division A % % Division B % % Division C % % < Required 1 Required 2 >
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