Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division Division Division c Sales $15.900,000 $ 28,720,000 $ 20,720,000 Average operating assets $ 3,180,000 $ 7,180,000 $ 5,180,000 Het operating income $ 636,000 $ 430,800 $ 621,600 Minimum required rate of return 7.000 7.500 12.00 Required: 1. Compute the margin, turnover, and return on investment (RO) 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 yleld a 8% 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? Complete this question by entering your answers in the tabs below. Req1 Reg 2 Reg 3A Reg 38 Compute the margin, turnover and return on investment (ROI) for each division. (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 Net operating income Minimum required rate of return Division A $15,900,000 $ 3,180,000 $ 636,000 7.000 Division a Division c $ 28,720,000 $ 20,720,000 $ 7,180,000 $5,180,000 $ 430,800 $ 621,600 7.500 12.000 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 8% 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? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Reg 35 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 C Residual income (108) 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 $15,900,000 $ 3,180,000 636.000 7.00 Division $ 28,720,000 $ 7,180,000 $ 430,000 7.501 Division C $ 20,720,000 $ 5,180,000 $ 621,600 12.000 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 8% 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? Complete this question by entering your answers in the tabs below. Reg 2 Req1 Reg 3A Req 30 Assume that each division is presented with an investment opportunity that would yield a 8% 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 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 $15,900,000 $ 3,180,000 $ 636,000 7.000 Division 3 $ 28,720,000 $ 7,180,000 $ 430,800 7.500 Division C $ 20,720,000 $ 5,180,000 $ 621,600 12.00 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 8% 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? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Req 3B Assume that each division is presented with an investment opportunity that would yield a 8% 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 C
