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Selected sales and operating data for three divisions of different structural engineeting firms are given as follows: Required: 1. Compute the return on imvestment (ROD)
Selected sales and operating data for three divisions of different structural engineeting firms are given as follows: Required: 1. Compute the return on imvestment (ROD) 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 opportunify that would yield a 15% rote 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 messured by residual income, which division or divisions will probably accept or rejoct the opportunity? Complete this question by entering your answers in the tabs below. Compute the return on investment (RO1) for each division using the formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round your anawers to 1 decimal place.)
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