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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 $ 15,400,000 $3,080,800 693,600 7.00 Division B $ 28,320,000 $ 7,080,000 $ 396, 480 7.50% Division c $ 25,400,000 $ 5,080,000 $ 736,600 14.50% Required: 1. Compute the margin, tumover, and return on investment (ROI) for each division 2. Compute the residual income foss) for each division 3. Assume that each division is presented with an investment opportunity that would yield a 8% rate of retum a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? 5. If performance is being measured by residual income, which division or divisions will probably accept the opportunity? Reg 1 Reg 2 Req Reg 3B Compute the margin, turnover, and return on investment (ROI) for each division. (Do not round intermediate Round your answers to 2 decimal places.) Margin Turnover ROI Division A Division B % 96 % Division C % Req2 > Complete this question by entering your answers in the tabs below Reg 1 Regi Req Req 3B Compute the residual income (loss) for each division. (Do not round intermediate calculations. Loss amou indicated by a minus sign.) Division A Division B Division C Residual income (loss) Complete Reg 1 Req2 Reg 3A Reg 38 Assume that each division is presented with an investment opportunity that would yield a 8% rate of return. If performa 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 nces Req 1 Req 2 Req Req 3B Assume that each division is presented with an investment opportunity that being measured by residual income, which division or divisions will probably Division A Division B Division C

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