thank u
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 $ 5,800,000 $ 1,450,000 $ 284,200 18.000 Division B $ 9,800,000 $ 4,900,000 $ 872,200 17.808 Division c $ 8,900,000 $ 2,225,000 $ 191, 350 15.000 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 18% rate of return. a. If performance is being measured by ROI, 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 Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Req 3B and turnover. (Do not urn toq a. If performance is being measured by ROI, 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Req 3B 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 5,800,000.00 % 9,800,000.00 1,900,000.00 % Division 1,450,000.00 % 4,900,000.00 2.225,000.00 % Division 284,200.00 % 872,200.00 191,350.00% B C S Reg Reg 2 > 3. Assume that each division is presented with an investment oppoftunity that would yield a 18% rate of return. a. If performance is being measured by ROI, 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 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 A Division B Division C Residual income (oss) Ret a. If performance is being measured by ROI, 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 opportu Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req Req 3B Assume that each division is presented with an investment opportunity that would yield a 18% 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 Rea2 a. If performance is being measured by ROI, which division or divisions will probably accept or reject the oppo b. If performance is being measured by residual income, which division or divisions will probably accept or re_ Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Req 3A Req 3B Assume that each division is presented with an investment opportunity that would yield a 18% rate of return. If p is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Division A Division B Division C
