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Selected sales and operating data for three divisions of different structural engineering firms are given as follows Division A $15,200,000 s 3,040,000 $ 668,800 Division

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Selected sales and operating data for three divisions of different structural engineering firms are given as follows Division A $15,200,000 s 3,040,000 $ 668,800 Division C $ 35,200,000 25,200,000 $ 7,040,000 5,040,000 $ 563,200 655,200 Division B Sales Average operating assets Net operating income Minimum required rate of return 9. 00% 9. 50% 13.00% Required: 1. Compute the return on investment (ROI) 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 opportunity that would yield a 10% rate of return a. If performance is being measured by ROl, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Complete this question by entering your answers in the tabs below. Req 3A Req 1 Req 2 Req 3B Assume that each division is presented with an investment opportunity that would yield a 10% 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 Req 3A Req 3B Selected sales and operating data for three divisions of different structural engineering firms are given as follows Division A $15,200,000 $ 3,040,000 $ 668,800 Division C $ 35,200,000 25,200,000 $ 7,040,000 $5,040,000 $ 563,200 655,200 Division B Sales Average operating assets Net operating income Minimum required rate of return 9 . 00% 9.50% 13 , 008 Required: 1. Compute the return on investment (ROI) 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 opportunity that would yield a 10% rate of return a. If performance is being measured by ROl, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3B Req 3A Assume that each division is presented with an investment opportunity that would yield a 10% 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 C K Req2 Req 3B > Selected sales and operating data for three divisions of different structural engineering firms are given as follows Division A $15,200,000 $ 3,040,000 $668,800 Division B $ 35,200,000 25,200,000 $7,040,000 5,040,000 $ 563,200 655,200 Division C Sales Average operating assets Net operating income Minimum required rate of return 9.00% 9. 50% 13.00% Required: 1. Compute the return on investment (ROI) 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 opportunity that would yield a 10% rate of return a. If performance is being measured by ROl, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Compute the residual income (loss) for each division. (Do not round intermediate calculations. Loss amounts should be indicated by a minus sign.) Division B Division C Division A Residual income (loss)

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