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.

Assume that each division is presented with an Investment opportunity that would yleld a rate of return of $26\%.$

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

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