Eta Company would like to examine the sales margin and asset components of return on investment for three of its divisions and has accordingly prepared the following information:

Required(a) Compute each division's return on investment, sales margin, and turnover.(b) Comment on the divisions' relative rankings on the ratios computed in part a.(c) Compute each division's residual income, assuming a required return on investment of8%.

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DIVISION OPERATING INCOME DIVISION INVESIMENT $575,000 SALES $500,000 $75,000 91,000 1,000,000 G. 176,000 763,000