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Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C Sales $

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

Division A Division B Division C
Sales $ 5,000,000 $ 9,000,000 $ 8,100,000
Average operating assets $ 1,000,000 $ 4,500,000 $ 1,620,000
Net operating income $ 205,000 $ 729,000 $ 109,350
Minimum required rate of return 16.00 % 16.20 % 13.00 %

Required:
1.

Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (Round your answers to 2 decimal places.)

Margin Turnover ROI
Division A % %
Division B % %
Division C % %
2.

Compute the residual income (loss) for each division. (Loss amounts should be indicated by a minus sign. Round your "Required rate of return" to 2 decimal places.)

Division A Division B Division C
Average operating assets
Required rate of return % % %
Required operating income
Actual operating income
Required operating income (above)
Residual income (loss)

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