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Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating Auneta Net operating income Minimum

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Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating Auneta Net operating income Minimum required rate of return Division $ 12,000,000 $13.000.000 600.000 140 Division B $ 14,000,000 $ 19.000.000 $ 560.000 101 Division $ 25,000,000 $ 5.000.000 $ 800,000 166 Required: 1. Compute the margin, turnover and return on investment (ROI) for each division, 2. Compute the residual income (loss) for each division, 3. Assume that each division is presented with an investment opportunity that would yield a 15% rate of return 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? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Reg 38 Compute the margin, turnover, and return on investment (ROI) for each division. (Do not round intermediate calculations Round your answers to I decimal place.) Margin Turnover ROI X Division A Division B Division % % Reg 2 > Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Req 3B Compute the residual income for each division. (Loss amounts should be indicated by a min Division A Division B Division G Residual income (loss) Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req Reg 3B Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? Division Division B Division C Reg 1 Reg 2 Reg 3A Req 3B Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. If performance is being measured by residual income, which division or divisions will probably accept the opportunity? Division A Division B Division C

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