Question: Please answer! For answers 3A and 3B please write Accept or Reject. Three divisions of Jameson Co. report the following sales and operating data: Sales

Please answer!

Please answer! For answers 3A and 3B please write Accept or Reject.

Three divisions of Jameson Co. report the following sales and operating data:

For answers 3A and 3B please write Accept or Reject.

Three divisions of Jameson Co. report the following sales and operating data: Sales Average operating assets Operating income Minimum required rate of return Fitness Training $560,000 $112,000 $ 22,400 14% Spa Services $810,000 $162,000 $ 32,400 16% Athletic Wear $500,000 $100,000 $ 25,000 14% Required: 1. Compute the ROI for each division, using the formula stated in terms of margin and turnover. Fitness training Spa services Athletic wear ROI % % % 2. Compute the residual income for each division. Fitness Training Spa Services Athletic Wear Residual income 3. Assume that each division is presented with an investment opportunity that would yield a rate of return of 21%. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? Fitness Training Spa Services Athletic Wear b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity? Fitness Training Spa Services Athletic Wear

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