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Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Required: Compute the margin, turnover, and return on
Selected sales and operating data for three divisions of different structural engineering firms are given as follows:
Required:
Compute the margin, turnover, and return on investment ROI for each division.
Compute the residual income loss for each division.
Assume that each division is presented with an investment opportunity that would yield a 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?
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Req
Req
Compute the margin, turnover, and return on investment ROI for each division. Do not round intermediate calculations.
Round your answers to decimal places.
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