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Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C Sales $12,080,000
Selected sales and operating data for three divisions of different structural engineering firms are given as follows:
Division A Division B Division C Sales $12,080,000 $ 35,100,000 $25,100,000 Average operating assets $ 3,020,000 $ 7,020,000 $ 5,020,000 Net operating income $ 531,520 $ 526,500 $ 627,500 Minimum required rate of return 9.00% 9.50% 12.50% ' Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B 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 C % %Complete this question by entering your answers in the tabs below. Compute the residual income (loss) for each division. (Do not round intermediate calculations. Loss amounts should be indicated by a minus sign.) Residuanmmeuoss) ___ Complete this question by entering your answers in the tabs below. Assume that each division is presented with an investment opportunity that would yield a 10% rate of return. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? Division A Division B Division C Complete this question by entering your answers in the tabs below. Assume that each division is presented with an investment opportunity that would yield a 10% rate of return. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunityStep by Step Solution
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