Question: m-cn , 21 ZZ U Help Save & Exit Required information The following information applies to the questions displayed below.) Megamart, a retailer of consumer
m-cn , 21 ZZ U Help Save & Exit Required information The following information applies to the questions displayed below.) Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center) Investment Center Electronics Sporting goods Sales Income 544,500,000 $3,560,000 26.220.000 2.622.000 Invested Assets $17,800,000 13,800,000 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 11% 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 15% return on investment. Should the new investment opportunity be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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? Return on investment / Choose Denominator Return on Choose Numerator Retum on Investmen Electronics
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