Exercise $9-10($Static$)$ 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 $15\%$ return on investment. Should the new investment opportunity be accepted? The target return is $12\%.$

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