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Selected sales and operating data for three divisions of different structural engineering firms are given as follows: 55 Sales Average operating assets Net operating Income

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Selected sales and operating data for three divisions of different structural engineering firms are given as follows: 55 Sales Average operating assets Net operating Income Minimum required rate of return Division A $ 6,300,000 5 1,260,000 $ 340,200 20.000 Division $ 10,300,000 $ 5,150,000 $ 968,200 18.800 Division $ 9,400,000 $ 1,880,000 $ 249, 100 17.000 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 (loss) for each division 3. Assume that each division is presented with an investment opportunity that would yield a 20% 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 Req2 Reg 3A Req3B 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 % % Roo Reg 2 >

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