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The following information applies to the questions displayed belov CommercialServices.com Corporation provides business-to-business services on the internet. Data concerning the most recent year appear below:

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The following information applies to the questions displayed belov CommercialServices.com Corporation provides business-to-business services on the internet. Data concerning the most recent year appear below: Sales Net operating income Average operating assets $ 4,560,000 $ 270,000 5900,000 The following questions are to be considered Independently Exercise 10-13 Part 3 (Algo) 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,750,000 increase in sales, requiring a $350,000 increase in average operating assets, with resulting $401,875 increase in net operating income. What would be the company's ROI in this scenario? (Do not found intermediate calculations, Round your answer to 2 decimal placen.) Rauno ROD Juniper Design Listed of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company hediet operating income of $470,000 on sales of $1,700.000. The company's average operating assets for the year were $1.900.000 and its minimum required rate of return was 11% Required: Compute the company's residual income for the year Bowie Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division Sales $ 12,240,000 $ 14,280,000 $ 25,500,000 Average operating assets $ 3,060,000 $ 7,140,000 $ 5,100,000 Net operating income $ 612,000 $ 571,200 $ 816,080 Minimum required rate of return 144 105 164 Required: 1. Compute the return on investment (RON for each division using the formule stated in terms of margin and turnover. 2. Compute the residual income foss) for each division 3. Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. Il performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Complete this question by entering your answers in the tabs below. Reg 1 Rng 2 Req Reg 36 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 1 decimal place.) Marge Turnover ROI Division A Division Division % % % % %6 Bom 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 A $ 12,240,000 $ 3,060,000 $ 612,000 14% Division B $ 14,280,000 $ 7,140,000 $ 571,200 10% Division C $ 25,500,000 $ 5,100,000 $ 816,000 16% 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 15% 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? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Reg 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 Residual income (loss) (Reg 1 Req3A > 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 4 $ 12,240,000 $ 3,060,000 $ 612,000 14 Division B $ 14,280,000 $ 7,140,000 $ 571,200 104 Division $ 25,500,000 $ 5,100,000 $ 816,000 165 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 15% 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? Complete this question by entering your answers in the tabs below. Reg 1 Raga Reg 3A Req 3B Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? Division A Division 9 Division Reg2 Reg 30 Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assess Net operating income Minimum required rate of return Division 4 $ 12,240,000 $ 3,060,000 $ 612,000 144 Division B $ 14,288,000 $ 7,140,000 $ 571,200 109 Division $ 25,500,000 $ 5,100,000 $ 816,000 16 Required: 1 Compute the return on investment (ROfor 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 15% 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? Complete this question by entering your answers in the tabs below. RAQ RAZ Reg 3 Reg 38 Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. If performance is being measured by residual Incom, which division or divisions will probably accept or reject the opportunity? Division Divions Dision ROSA

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