Exercise $22-10($Algo$)$ Computing return on investment and residual income; investing decision LO A$1$

Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income?

Assume a target income of $12\%$ of average assets. Compute residual income for each center. Which center generated the most residual income?

Assume the Electronics center is presented with a new investment opportunity that will yield a $14\%$ return on investment. Should the new investment opportunity be accepted? The target return is $12\%.$