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

	Division A			Division B			Division C
Sales	$	12,600,000		$	35,750,000		$	20,600,000
Average operating assets	$	3,150,000		$	7,150,000		$	5,150,000
Net operating income	$	516,600		$	572,000		$	597,400
Minimum required rate of return		9.00	%		9.50	%		11.60	%

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.

1

	Margin		Turnover	ROI
Division A		%			%
Division B		%			%
Division C		%			%

2

	Division A	Division B	Division C
Residual income (loss)