[The following Information applies to the questions dlisplayed below.] Megamart, a retailer of consumer goods, provides the following Information on two of Its departments (each considered an Investment center). Average Invested Assets Investment Center Sales Income Electronics $34,880,000 $3,386,000 2,1ee,eee $17,480,80e 13,400,08e Sporting goods 2,412,008 Exercise 24-10 Computing return on investment and residual income; investing decision LO A1 1. Compute return on Investment for each department. Using return on Investment, which department Is most efficlent at using assets to generate returns for the company? 2 Assume a target Income level of 12% of average Invested assets. Compute residual Income for each department. Which department generated the most residual income for the company? 3. Assume the Electronicss department is presented with a new Investment opportunity that will yleld 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 assets to generate returns for the company? efficient at using Return on Investment Choose Numerator Choose Denominator: Return on Investment Return on Investment Electronics Sporting Goods Which department is most efficient at usingg assets to generate returns for the company? Exercise 24-10 Computing return on investment and residual income; investing decision LO A1 1. Compute return on investment for each department Using return on investment, which department is most efficlent at using assets to generate returns for the company? 2 Assume a target Income level of 12% 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 yleld 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 12 % 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 Target net income Residual income Which department is most efficient at using assets to generate returns for the company? Required 1 Required 3 Exercise 24-10 Computing return on investment and residual income; investing decision LO A1 1. Compute return on investment for each department Using return on investment, which department is most efficlent at using assets to generate returns for the company? 2 Assume a target Income level of 12% 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 yleld 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 12 % 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 Target net income Residual income Which department is most efficient at using assets to generate returns for the company? Required 1 Required 3 Exercise 24-1O Computing return on investment and residual income; investing decision LO A1 1. Compute return on investment for each department Using return on investment, which department is most efficlent at using assets to generate returns for the company? 2. Assume a target Income level of 12% of average Invested assets. Compute residual Iincome 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 yleld 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 the Electronics department is presented with a new investment opportunity that willl yield a 15% return on investment. Should the new investment opportunity be accepted? Should the new investment opportunity be accepted? Required 3 Required 2