Flashcards Copied Content Exercise 22-10 Computing return on investment and residual income; investing decision Megamart provides the following information on its two investment centers. Blectronics... Sporting Goods Sales $40,000,000 $280.000 30.000.000 2,040,000 $16.000.000 12,000,000 1. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? 2. Assume a target income of 12% of average assets. Compute residual income for each center. Which center generated the most residual income? 3. 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%.