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 Sales Income Average Invested Assets Electronics $ 32,600,000 $ 2,771,000 $ 16,300,000 Sporting goods 15,744,000 1,968,000 12,300,000 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 12 of average invested assets Compute residual income for each department Which department generated the most residual income for the company 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 Return on Investment Choose Numerator Choose Denominator Return on Investment Return on Investment Electronics Sporting Goods Which department is most efficient at using assets to generate returns for the company Assume a target income level of 12 of average invested assets Compute residual income for each department Which department generated the most residual income for 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 Numerator Choose Denominator Profit Margin Investment Center Profit Margin Electronics Sporting Goods Which department generates the most net income per dollar of sales Compute investment turnover for each department Which department is most efficient at generating sales from average invested assets Investment Turnover Choose Numerator Choose Denominator Investment Turnover Investment Center Investment Turnover Electronics Sporting Goods Which department is most efficient at generating sales from average invested assets please show all parts This is one question together

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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

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	Sales		Income		Average Invested Assets
Electronics	$	32,600,000	$	2,771,000	$	16,300,000
Sporting goods		15,744,000		1,968,000		12,300,000

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 12% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company?*

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?

Return on Investment
	Choose Numerator:	/	Choose Denominator:	=	Return on Investment
		/		=	Return on Investment
Electronics		/		=
Sporting Goods		/		=
Which department is most efficient at using assets to generate returns for the company?

Assume a target income level of 12% of average invested assets. Compute residual income for each department. Which department generated the most residual income for 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 Numerator:	/	Choose Denominator:	=	Profit Margin
Investment Center		/		=	Profit Margin
Electronics		/		=
Sporting Goods		/		=
Which department generates the most net income per dollar of sales?

Compute investment turnover for each department. Which department is most efficient at generating sales from average invested assets?

Investment Turnover
	Choose Numerator:	/	Choose Denominator:	=	Investment Turnover
Investment Center		/		=	Investment Turnover
Electronics		/		=
Sporting Goods		/		=
Which department is most efficient at generating sales from average invested assets?