Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Het operating income Minimum required rate of return Division A $ 12,400,000 $ 3,100,000 $ 508,400 7.00% Division $ 35,500,000 $ 7,100,000 $ 426,000 7.50% Division $ 20,400,000 $5,100,000 $ 510,000 10.00 Book 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? Print eferences Complete this question by entering your answers in the tabs below. Reg! Reg 2 Reg 3A Reg 3B 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 % 9 Division % % Ro2 > 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 $ 12,400,000 $ 3,100,000 5 508,400 7.00 Division $ 35,500,000 $ 2,100,000 5 426,000 7.50 Division $ 20,400,000 55,100,000 $ 510,000 10.00 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 3. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? bf 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 RAJA Reg 38 Compute the residual income Toss) for each division. (Do not round Intermediate calculations. Loss amounts should be Indicated by a minus sign.) Diva A Divlo B Divlon Reses) 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 $ 12,400,000 $ 3,100,000 $ 500,400 7.00% Division B $ 35,500,000 $ 7,100,000 $ 426,000 7.50% Division $ 20,400,000 $ 5,100,000 5 510,000 10.03% 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. 1 Reg 2 Red 3A Reg 38 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
