Problem 3 Determing Missing Items from Computations (10 points) Data for the North, South, East, and West division of Free Bird Company are as follows: Sales 5 North $875,000 G South (d) 7 East $1,054,000 " West $1,250,000 a. 10 Income from Operations Invested Assets Rate of Return on Investment Profit Investment Margin Turnover (a) (b) 17.8% 7.5% (c) 55,400 (e) (0) 5.0% 3.8 (g) 91,500 675,000 520,000 15.2% (j) (h) (i) (k) Determine the missing items, identifying each by the letter (a) througth (I). Round percents and investment turnover to one decimal place. (1) Sales 12 ==== North $875,000 South $1,108,000 14 East $1,054,000 15 West $1,250,000 b. 29 the return established by management is 30 North Disintom Determine the residual income for each divison. assuming that the minimum acceptable rate of 12% 12% $368,680 Income from Invested Rate of Return on Operations Assets Profit Margin Investment Turnover Investment $65,625 368,680 17.8% 7.5% 2.4 $55,400 291,579 19.0% 5.0% 3.8 $102,600 675,000 15.2% 9.7% 1.6 591,500 520,000 17.6% 7.3% 2.4 a. Determine the missing items, identifying each by the letter (a) througth (1). Round percents and investment turnover to one decimal place. Income from Invested Sales Rate of Retur on Operations Assets Profit Margin Investment Turnover Investment North $875,000 $65,625 368,680 17.8% % 2.4 South $1,108,000 $55,400 291,579 19.0% 3.8 East $1,054,000 675,000 15.2% 9.7% 1.6 West $1,250,000 520,000 17.6% 7.3% 2.4 9 b. Bo North Division: South Division: 32 Fast Divison: 33 West Division: $102,600 $91,500 Determine the residual income for each divison. assuming that the minimum acceptable rate of the return established by management is 12% $368,680 $291,579 $675,000 $520,000 12% 12% 12% 12% 34 C. 36 37 Which division is the most profitable in terms of (1) return on investment and (2) residual income? (The South Division has the highest return on investment