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

$1.$ Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company?

$2.$ Assume a target income level of $10\%$ of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company?

$3.$ Assume the Electronics department is presented with a new investment opportunity that will yield a $14\%$ return on investment. Should the new investment opportunity be accepted?