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Three divisions of Jameson Co. report the following sales and operating data: Fitness Spa Services Wear Sales Average operating assets Operating income Minimum required rate

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Three divisions of Jameson Co. report the following sales and operating data: Fitness Spa Services Wear Sales Average operating assets Operating income Minimum required rate of return 5 610,000 5 152,500 5 24.400 810,000 S600,000 202,500 150,000 32,400 S 30,000 1396 1596 13% 1. Compute the ROl for each division, using the formula stated in terms of margin and turnover ROI Fitness training Athletic wear 2. Compute the residual income for each division. Fitness TrainingSpa Services Athletic Wear Residual income 3. Assume that each division is presented with an investment opportunity that would yield a rate of return of 20% a. If performance is being measured by ROl, which division or divisions will probably accept the Fitness T Spa Services Athletic Wear b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity? Fitness T Spa Services Athletic Wear

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