Selected sales and operating data for three divisions of three different companies are given below:

	Division A			Division B			Division C
Sales	$	7,300,000		$	11,300,000		$	10,400,000
Average operating assets	$	1,460,000		$	5,650,000		$	2,080,000
Net operating income	$	467,200		$	1,175,200		$	379,600
Minimum required rate of return		27	%		20.8	%		24	%

Required:
1.	Compute the return on investment (ROI) for each division, using the formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

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

2.	Compute the residual income for each division. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.)

	Division A	Division B	Division C
Residual income	$	$	$

3.	Assume that each division is presented with an investment opportunity that would yield a rate of return of 29%.

a.	If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity?

Division A	(Click to select) Reject Accept
Division B	(Click to select) Accept Reject
Division C	(Click to select) Accept Reject

b.	If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity?

Division A	(Click to select) Accept Reject
Division B	(Click to select) Reject Accept
Division C	(Click to select) Reject Accept