2. Required information Use the following information for the Exercises below. [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 $40, 800,000 17, 680,000 Income $3,060,000 2,210,000 Average Invested Assets $17,000,000 13,000,000 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 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? X Answer is not complete. 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? = Sales = Return on Investment Choose Numerator: Choose Denominator: Net income Electronics $ 40,800,000 $ 3,060,000 = Sporting $ Goods 17,680,000 $ 21,210,000 = Which department is most efficient at using assets to generate returns for the company? Return on Investment Return on Investment 1,333% 83% Sporting goods Required 1 Required 2 Required 3 Assume a target income level of 11% of average invested assets. Compute residual income fo department generated the most residual income for the company? Investment Center Electronics Sporting Goods Net income $ 3,060,000 $ 2,210,000 Target net income 40,800,000 3,060,000 Residual income Which department is most efficient at using assets to generate returns for the company? Answer is not complete. 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 will yield a 15% investment. Should the new investment opportunity be accepted? Should the new investment opportunity be accepted?