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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 incone 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 incone Minimum required rate of return Division A $5,000,000 $1,000,000 $ 205,000 16.00% Division B $ 9,000,000 $4,500,000 $ 729,000 16.28% Division $ 8, 180,000 $1,620,000 $ 109, 350 13.00 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 16% 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 JA Reg 36 Compute the residual income (loss) for each division (Do not round Intermediate calculations, Loss amounts should be indicated by a minus sign) Division Divisions Division Residual com oss)

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