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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

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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 $12,280,000 $ 3,070,000 $ 601,720 10.000 Division 3 $ 35,350,000 $ 7,070,000 S 600,950 10.500 Division c $ 20,280,000 $ 5,070,000 $ 567,840 11.200 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 11% 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. Reg 1 Reg 2 Req 3A Reg 38 Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (Do not round ermede slculations. Round your answers to 2 decimal places.) Margin Turnover ROI % Division A Division B Division % % % R Reg 2 > using the formula stated in terms of margin ar 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 11% rate of rem a. If performance is being measured by ROI, which division or divisions will probably accept or reject the b. If performance is being measured by residual income, which division or divisions will probably accept o OOK Complete this question by entering your answers in the tabs below. rences Reg 1 Reg 2 Req Req 3B Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turn round intermediate calculations. Round your answers to 2 decimal places.) Margin Turnover ROI Division A Division B % % Division C 1% % Req? Reg 2 > 11.20 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 11% 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 Book Print brences Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Reg 3B Compute the residual income (loss) for each division. (Do not round Intermediate calculations. Loss amounts should be In cate by a minus sign.) Division A Division B Division Residual income (loss) 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 11% 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. Reg 1 Reg 2 Req Reg 3B Assume that each division is presented with an investment opportunity that would yield a 11% rate of return. If performance is being measured by ROI, which ovision or divisions will probably accept or reject the opportunity? Division A Division B Division C 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 11% 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. Reg 1 Reg 2 Reg 3 Reg 3 Assume that each division is presented with an investment opportunity that would yield a 11% rate of return. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Division A Lision B Divisio

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