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

Division A Division B Division C

Sales $ $15,950,000$ $ $28,760,000$ $ $25,950,000$

Average operating assets $ $3,190,000$ $ $7,190,000$ $ $5,190,000$

Net operating income $ $733,700$ $ $373,880$ $ $752,550$

Minimum required rate of return $6\mathrm{.}00\%6\mathrm{.}50\%14\mathrm{.}50\%$

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 $7\%$ 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?