Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets tlet operating income Minimum required rate of return Division A $15,300,000 $ 3,060,000 5 703,800 9.000 Division 3 $ 35,300,000 $ 7,060,000 $ 529,500 9.500 Division $ 20,240,000 $ 5,060,000 $ 526, 240 10.400 Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division, 3. Assume that each division is presented with an investment opportunity that would yield a 10% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisiobs will probably accept or reject the opportunity? Complete this question by entering your answers in the tabs below. Req1 Reg 2 Req 3A Reg 38 Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Margin Turnover ROI % Division A Division B Division C % % % Reu Req2 > Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Average operating assets Het operating income Minimum required rate of return Division A $15,300,000 $ 3,060,000 5 703.800 9.00 Division Division $ 35,300,000 $20,240,000 $ 7,060,000 $ 5,060,000 $ 529,500 $ 526,240 9.500 10.400 Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division 3. Assume that each division is presented with an investment opportunity that would yield a 10% rate of return a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3A Reg 38 Compute the residual income (lon) for each division (Do not round Intermediate calculations. Loss amounts should be Indicated by a minus sign. Division A Division Division Residual income (low) Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Net operating income Minimum required rate of return Division $15,300,000 $ 3,060,000 $ 703,800 9.000 Division $ 35,300,000 $ 7,060,000 $ 529,500 9.500 Division c $20, 240,000 $ 5,060,000 $ 526,240 10.409 Required: 1. Compute the return on investment (RON for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division 3. Assume that each division is presented with an investment opportunity that would yleld a 10% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual Income, which division or divisions will probably accept or reject the opportunity? Complete this question by entering your answers in the tabs below. Req1 Reg 2 Reg Reg 35 Assume that each division is presented with an investment opportunity that would yield a 10% rate of return. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? Division Division Division Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Sales Average operating assets Net operating income Minimum required rate of return Division A $15,300,000 $ 3,060,000 $ 703,800 9.000 Division $ 35,300,000 $ 7,060,000 $ 529,500 9.501 Division $ 20,240,000 $ 5,060,000 $ 526,240 10.400 Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual Income (loss) for each division 3. Assume that each division is presented with an investment opportunity that would yield a 10% rate of return a. I performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Reg 36 Assume that each division is presented with an investment opportunity that would yield a 10% rate of return. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Division A Division B Division
