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 Income 540,000,000 $3,064,000 17,680,000 2,210.000 Average Invested Assets $17,000,000 13,000,000 Exercise 22-10 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? Complete this question by entering your answers in the tabs below. 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? Choose Numerator: Return on Investment Choose Denominator Return on investment Return on investment Electronics 1 Sporting Goods Which department is most eficient at using assets to generate returns for the company the company? Investment Center Electronics Sporting Goods Net income Target net income Residual income Which department is most efficient at using assets to generate returns for the company? Compute profit margin for each department. Which department generates the most net income per dollar of sales? Profit Margin Choose Numeratore Choose Denominator: Investment Center Electronics Sporting Goods Which department generates the most net income per dollar of sales? Prolit Margin Profit Margin Investment Turnover Investment Turnover Choose Numerator: Choose Denominator: Investment Center 1 Electronics 1 Sporting Goods Which department is most efficient at generating sales from average invested assets? Investment Turnover Profit Marin