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Selected sales and operating data for three divisions of different structural englneering firms are glven as follows: Required: Selected sales and operatlng data for three
Selected sales and operating data for three divisions of different structural englneering firms are glven as follows:
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Selected sales and operatlng data for three dlvlslons of dlfferent structural englneerlng firms ere glven as follows: gles Average operating assets Net operating Inco* Minimum required rate of return Requlred: Division A S 612, eoe Division B S 571, zee Division C S 818,eee 1_ Compute the return on Investment (ROI) for each dlvlslon uslng the formula stated In terms of margln and turnover 2 Compute the resldual Income (loss) for each dlvlslom 3_ Assume thet each dlvlslon Is presented wlth an Investment opportunlty would yleld a rate of return If performance Is belng measured by ROI, dlvlslon or dlvlslons wlll probably acceptor reject the opportunlty? b. If performance Is belng measured by reslduol Income, vvhlch dlvlslon or dlvlslons probably accept or reject the opportunlty? Complete this question by entering your answers in the tabs below. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnuer. (Do not round intermediate calculations. Round your answers to I decimal place.) Division A Division 8 Division C
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