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

Division A Division B Division C

Sales $ $12,280,000$ $ $35,350,000$ $ $20,280,000$

Average operating assets $ $3,070,000$ $ $7,070,000$ $ $5,070,000$

Net operating income $ $601,720$ $ $600,950$ $ $567,840$

Minimum required rate of return $10\mathrm{.}00\%10\mathrm{.}50\%11\mathrm{.}20\%$

Required:

$1.$ Compute the margin, turnover, and return on investment $($ROI$)$ for each division.

$2.$ Compute the residual income $($loss$)$ for each division.

$3.$ Assume that each division is presented with an investment opportunity that would yield a $11\%$ rate of return.

a$.$ If performance is being measured by ROI, which division or divisions will probably accept the opportunity?

b$.$ If performance is being measured by residual income, which division or divisions will probably accept the opportunity?