Three divisions of Jameson Co$.$ report the following sales and operating data:

Required:

Compute the ROI for each division, using the formula stated in terms of margin and turnover.

$2.$ Compute the residual income for each division.

$3.$ Assume that each division is presented with an investment opportunity that would yield a rate of return of $21\%.$

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

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