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Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Required: 1. Compute the margin, turnover, and return

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

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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?

image text in transcribed

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SalesAverageoperatingassetsNetoperatingincomeMinimumrequiredrateofreturnDivisionA$12,360,000$3,090,000$494,4007.00%DivisionB$28,360,000$7,090,000$453,7607.50%DivisionC$25,450,000$5,090,000$636,25012.50% Complete this question by entering your answers in the tabs below. Req 3A Req 3B Assume that each division is presented with an investment opportunity that would yield a 8% rate being measured by residual income, which division or divisions will probably accept or reject the Req 3A Compute the margin, turnover, and return on investment (ROI) for e Round your answers to 2 decimal places.) \begin{tabular}{|l|l|l|l|l|l|} \hline & \multicolumn{2}{|c|}{ Margin } & Turnover & \multicolumn{2}{c|}{ ROI } \\ \hline Division A & & % & & & % \\ \hline Division B & & % & & & % \\ \hline Division C & & % & & & % \\ \hline \end{tabular} Compute the residual income (loss) for each division. (Do not round interme indicated by a minus sign.) Assume that each division is presented with an investment opportunity that would yield a 8% rate of being measured by ROI, which division or divisions will probably accept or reject the opportunity

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