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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 $ 7,400,000 $ 1.480.000 S 401,000 28.000 Division $ 11,400,000 $ 2,850,000 $ 1,197,000 42.000 Division c $ 10,500,000 $ 2,100,000 9 393,750 25.000 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 30% 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 ReQ 3A Reg 38 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 * % % Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Not operating income Minimum required rate of return Division A $ 7,400,000 $ 1,480,000 $ 481,000 28.00% Division $ 11,400,000 $ 2,850,000 $ 1.197.000 42.000 Division $ 10,500,000 $ 2,100,000 $ 393,750 25.000 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 30% 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 Req Reg 38 Compute the residual income (loss) for each division. (Do not round intermediate calculations. Loss amounts should be indicated by a minus sign.) Division A Division B Division Residual income (loss) 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 $ 7,400,000 $ 1,480,000 $ 481,000 28.000 Division 3 $ 11,400,000 $ 2,850,000 $ 1,197,000 42.000 Division $ 10,500,000 S 2,100,000 $ 393,750 25.000 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 30% 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 Rea Req 3B Assume that each division is presented with an investment opportunity that would yield a 30% rate of return. If performance Is being measured by ROI, which division or divisions will probably accept or reject the opportunity? Division A Division B Division C Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division Division 3 Division Sales $ 7,400,000 $ 11,400,000 $ 10,500,000 Average operating assets $ 1,480,000 $ 2,850,000 $ 2,100,000 Net operating income $ 481,000 $ 2.197.000 $ 393,750 Minimum required rate of return 28.00 42.004 25.00% 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 (loss) for each division 3. Assume that each division is presented with an investment opportunity that would yield a 30% rate of retum. 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. Req1 Reg 2 Reg 3A Req30 Assume that each division is presented with an investment opportunity that would yield a 30% rate of return. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Division A Division B Division

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