Selected sales and operating data for three divisions of different structural engineering firms are given as follows: DEVELONA DIVINO Divine Sales 83,100,000 14,210,000 $ 25,375.000 Average operating site 13.045,000 $ 7,105.000 8.5.075.000 Not operating income 609,000 #568,000 5 812,000 Minimum required rate of return 141 105 168 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 foss) for each division 3. Assume that each division is presented with an investment opportunity that would yield a 15% 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 opportunity? Complete this question by entering your answers in the tabs below. Req HG 2 Reg38 Compute the return on investment (Hon for each division using the formula stated in terms of margin and turnover. (Do not round Intermediate calculations. Round your answers to 1 decimal place) Margin Turnover ROL Division A Division Division C Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C Sales $ 12,180,000 $ 14,210,000 $ 25,375,000 Average operating assets $ 3,045,000 $ 7,105,000 $ 5,075,000 Net operating income $ 609,000 $ 568,400 $ 812,000 Minimum required rate of return 14 101 168 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 15% 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. Reg 1 Req 2 Req Req 3B Compute the residual income (loss) for each division. (Do not round intermediate calculations. Loss amounts should be indicated by a minus sign.) Division A Division B Division C Residual income (loss) Reg1 RegSA > Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division Division Division Sales $ 12,180,000 $ 14,210,000 25, 175,000 Average operating anseta $ 1,045,000 7,105,000 $ 5,075,000 Net operating income $ 609,000 $ $68,400 6 812,000 Minimum required rate of return 141 100 168 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 15% 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 opportu Complete this question by entering your answers in the tabs below. Reg1 Reg 2 Req 3A Reg 38 Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? Division A Division Division C 100 160 Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division Division 3 Division Sales $ 12,180,000 $ 14,210,000 $ 25,375,000 Average operating assets $ 3,045,000 $ 7,105,000 $ 5,075,000 Net operating income $ 609,000 $ 568,400 $ 812,000 Minimum required rate of return 148 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 15% 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 oppon Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Reg 38 Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Division A Division B Division Reg SA
