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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 $6,400,000 S10,400,000 $9,500,000 $1,600,000

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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 $6,400,000 S10,400,000 $9,500,000 $1,600,000 S 5,200,000 $2,375,000 $ 352,000 S 988,000 261,250 Division C Sales Average operating assets Net operating income Minimum required rate of return 18.00% 19.00% 15.00% 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 imes imes imes 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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