Question: 2. Question 3 - Performance Evaluation - Version 8 (10 marles) Dingo Division's operating results includes controllable margin of $100,000, sales totaling $1,200,000, and investment

Dingo Division's operating results includes controllable margin of $100,000, sales totaling $1,200,000,

2. Question 3 - Performance Evaluation - Version 8 (10 marles) Dingo Division's operating results includes controllable margin of $100,000, sales totaling $1,200,000, and investment 5 of average operating assets of $500,000. Dingo is considering a project with sales of $120,000, controllable margin of $30,000, and an imvestment of average operating assets of $200,000. 6 Dingo's minimum required rate of return is 12%. Required: 1. If Dingo Division is evaluated based on ROI, would the division accept this project? Calculate the current ROI and the ROI with the new project and comment. (5 marks) 2. If Dingo Division is evaluated based on residual income, would the division accept this project? Calculate the current RI and the RI with the new project and comment

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