The following information applies to the questions displayed below. Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Electronics Sporting goods Sales Income $42,240,000 $3,168,000 23, 120,000 2,312.000 Average Invested Assets $17,600,000 13.600.000 1. Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? 2. Assume a target income level of 11% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company? 3. Assume the Electronics department is presented with a new investment opportunity that will yield a 15% return on investment. Should the new investment opportunity be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? = Return on Investment = Return on Investment Return on Investment Choose Numerator: 1 Choose Denominator: Net income / Average invested assets Electronics $ 3,168,000 / $ 17,600,000 Sporting Goods S 2 ,312,000 / s 13,600,000 Which department is most efficient at using assets to generate returns for the company? 18% 17% Electronics Required 1 Required 2 > The following information applies to the questions displayed below.) Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Electronics Sporting goods Sales Income $42,240,000 $3,168,000 23, 120,000 2,312,000 Average Invested Assets $17,600,000 13,600,000 1. Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? 2. Assume a target income level of 11% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company? 3. Assume the Electronics department is presented with a new investment opportunity that will yield a 15% return on investment. Should the new investment opportunity be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume a target income level of 11% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company? Investment Center Electronics Sporting Goods Net income $ 3,168,000 $ 2,312,000 Target net income Residual income Which department is most efficient at using Electronics assets to generate returns for the company? Required 1 Required 3 >