Selected sales and operating data for three divisions of different structural engineering firms are given as follows:

	Division A			Division B			Division C
Sales	$	12,440,000		$	35,550,000		$	25,550,000
Average operating assets	$	3,110,000		$	7,110,000		$	5,110,000
Net operating income	$	547,360		$	639,900		$	740,950
Minimum required rate of return		10.00	%		10.50	%		14.50	%

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		Turnover	ROI
Division A		%			%
Division B		%			%
Division C		%			%

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)

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 division or divisions will probably accept or reject the opportunity?

Division A
Division B
Division C

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
Division B
Division C