Selected sales and operating data for three divisions of different structural engineering firms are given as follows:

Division A Division B Division C

Sales $ $12,560,000$ $ $35,700,000$ $ $20,560,000$

Average operating assets $ $3,140,000$ $ $7,140,000$ $ $5,140,000$

Net operating income $ $577,760$ $ $428,400$ $ $555,120$

Minimum required rate of return $7\mathrm{.}00\%7\mathrm{.}50\%10\mathrm{.}80\%$

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 $8\%$ 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?