Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Net operating Income Minimum required rate of return Division A $ 5,700,000 $ 1,149,000 $ 273,600 17.ee Division B $ 9,700,000 $ 4,850,000 $ 853,680 17,60% Division $ 8,800,000 $ 1,760,000 $ 180,400 14.00% 25 Required: 1 Compute the return on investment (Ron for each division using the formula stated in terms of margin and turnover 2. Compute the residual income foss) for each division 3. Assume that each division is presented with an investment opportunity that would yield a 17% rate of return. a. if performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? di performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Complete this question by entering your answers in the tabs below. Red Reg2 Red 34 Red 30 Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (Do not Found intermediate calculation. Round your answers to 2 decimal places) Mergin OM Turnov ROI $ Average operating assets Net operating income Minimum required rate of return $ 1,140,000 273,600 17.09% 4,850,000 853,600 17.60% $ 1,760,000 $ 180,400 14.00% Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division 3. Assume that each division is presented with an investment opportunity that would yield a 17% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the o Complete this question by entering your answers in the tabs below. Reg 1 Red 2 Reg 3A Reg 3B Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round your answers to 2 decimal places Margin Tumover ROI Division Division % Division % Req2 > UL $ $ $ 4,850,000 853,600 17.68% $ 1,140,000 $ 273,600 17.00% Average operating assets Net operating income Minimum required rate of return 1,760,000 180,400 14.00% Required: 1 Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 17% rate of return a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. if performance is being measured by residual income which division or divisions will probably accept or reject the Complete this question by entering your answers in the tabs below. Regi Reg 2 Reg 3A Reg 30 Compute the residual income (los) for each division. (Do not round intermediate calculations. Loss amounts should be Indicated by a minus sign Division A Division B Division Rencom ) Saved Quiz i $ $ Average operating assets Net operating incone Minimum required rate of return 1,140,000 273,600 17.ee $ 4,850,000 853,689 17.68% $ 1,760,000 $ 180,400 14.00% Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division 3. Assume that each division is presented with an investment opportunity that would yield a 17% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the oppo Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 keq 3A Reg 3B Assume that each division is presented with an investment opportunity that would yield a 17% rate of return. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? Division Division B Division & Reg 2 Req3B > Saved iz 0 $ Average operating assets Net operating income Minimum required rate of return $ 1,140,000 $ 273,600 17.00% 4,850,000 853,600 17.68% 1,760,000 180,400 14.09% Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division 3. Assume that each division is presented with an investment opportunity that would yield a 17% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the oppc Complete this question by entering your answers in the tabs below. Red 1 Reg 2 Reg 3A Assume that each division is presented with an investment opportunity that would yield a 17% rate of return. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Don A Division Division