Chapter 11 Exercises Saved 3 Selected sales and operating data for three divisions of different structural engineering firms are given as follows Division A $12,280,000 $ 3,070,000 $ 601,720 Division C $ 35,350,000 20,280,000 $ 7,070,000 5,070,000 $600,950 567,840 Division B 15 points Sales Average operating assets Net operating income Minimum required rate of return 10 . 00% 11.208 10.508 Skipped Required 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 11% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? eBook Ask Complete this question by entering your answers in the tabs below. Print Req 3A Req 1 Req 2 Req 3B References Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Margin ROI Turnover Division A Division B Division C Req 1 Req 2> Chapter 11 Exercises i Saved 3 Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A $12,280,000 $ 3,070,000 $ 601,720 Division C $ 35,350,000 $20,280,000 $ 7,070,000 5,070,000 $ 600,950 567,840 Division B 15 points Sales Average operating assets Net operating income Minimum required rate of return 10 , 50% 10 . 00% 11.20% Skipped Required 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division. 3, Assume that each division is presented with an investment opportunity that would yield a 11% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? eBook Ask Complete this question by entering your answers in the tabs below Print Req 2 Req 3A Req 1 Req 3B References Compute the residual income (loss) for each division. (Do not round intermediate calculations. Loss amounts should be indicated by a minus sign.) Division A Division B Division C Residual income (loss) KReq 1 Req 3A > Chapter 11 Exercises Saved 3 Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A $12,280,000 $ 3,070,000 7,070,000 5,070,00 $ 601,720 Division B Division C 15 points Sales Average operating assets Net operating income Minimum required rate of return S 35,350,000 20,280,000 $ 600,950 567,840 10.00% 10.50% 11 , 20% Skipped Required 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 11% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? eBook Ask Complete this question by entering your answers in the tabs below Print Req 2 Req 1 Req 3A Req 3B References Assume that each division is presented with an investment opportunity that would yield a 11% rate of return. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? Division A DivisionB DivisionC Req 2 Req 3B > Chapter 11 Exercises Saved 3 Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A $12,280,000 S 3,070,000 601,720 Division C 35,350,000 20,280,000 $ 7,070,000 5,070,000 $ 600,950 $567,840 Division B 15 points Sales Average operating assets Net operating income Minimum required rate of return 10 . 00% 10 . 508 11.208 Skipped Required 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division. 3, Assume that each division is presented with an investment opportunity that would yield a 11% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? eBook Ask Complete this question by entering your answers in the tabs below Print Req 1 Req 2 Req 3A Req 3B Assume that each division is presented with an investment opportunity that would yield a 11% rate of return. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Division A Division B Division C