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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 $6,500,000 $10,500,000 $9,600,000 $1,300,000
Selected sales and operating data for three divisions of different structural engineering firms are given as follows Division A Division B $6,500,000 $10,500,000 $9,600,000 $1,300,000 $5,250,000 $1,920,000 $ 364,000 1,008,000 273,600 Division C Sales Average operating assets Net operating income inimum required rate of return 21.00% 19.20% 18.00% 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 returr Required operating income Actual operating income Required operating income (above) Residual income (loss)
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