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Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Salou 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: Salou Average operating assets Net operating income Minimum required rate of return Division $12,480,000 $ 3,120,000 S 561,600 8.000 Division B $ 28,480,000 $ 7,120,000 $ 512,640 8.500 Division $20,480,000 55,120,000 $ 532,480 10.40% Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 9% 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? Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Req 3A Reg 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 *** % % % Reg 2 > Reg 1 Real Reg 3A Reg 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 Residual income (los) Complete this question by entering your answers in the tabs below. Reg1 Reg 2 Feq JA Reg 3B Assume that each division is presented with an investment opportunity that would yield a 9% 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 Complete this question by entering your answers in the tabs below. Req 1 Req2 Req 3A Reg 3B Assume that each division is presented with an investment opportunity that would yield a 9% 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 C Reg 3A

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