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 $ 12,080,000 $ 3,020,000 $ 531,520 9.008 Division B $ 35,100,000 $ 7,020,000 $ 526,500 9.508 Division C $ 25,100,000 $ 5,020,000 $ 627,500 12.508 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 10% 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. Req 1 Reg 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 % % % % % % % Req1 Req 2 > 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 Division B $ 12,000,000 $ 35,100,000 $ 3,020,000 $ 7,020,000 $ 531,520 $ 526,500 9.00% 9.50% Division C $ 25,100,000 $ 5,020,000 $ 627,500 12.50 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 10% 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 Reg 2 2 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 C Residual income (loss) HI 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 $ 12,080,000 $ 3,020,000 $ 531,520 9.008 Division B $ 35,100,000 $ 7,020,000 $ 526,500 9.50 Division C $ 25,100,000 $ 5,020,000 $ 627,500 12.508 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 10% 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. ULLER Req 1 Reg 2 2 Reg 3 Req 3B Assume that each division is presented with an investment opportunity that would yield a 10% rate of return. If performance a is being measured by ROI, which division or divisions will probably accept or reject the opportunity? Division A A Division B Division C 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 $ 12,080,000 $ 3,020,000 $ 531,520 9.00% Division B $ 35, 100,000 $ 7,020,000 $ 526,500 9.500 Division C $ 25,100,000 $ 5,020,000 $ 627,500 12.504 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 10% 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. Req 1 Req 2 Req 3A Req 3B Assume that each division is presented with an investment opportunity that would yield a 10% rate of return. If performance being measured by residual income, which division or divisions will probably accept or reject the opportunity? Division A Division B Division C
