Required information

Use the following information for the Exercises below. $($Algo$)$

$[$The following information applies to the questions displayed below.$]$

Megamart provides the following information on its two investment centers.

Exercise $9-10($Algo$)$ 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 $14\%$ return on investment. Should

the new investment opportunity be accepted? The target return is $12\%.$

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Required $3$

Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to

generate income?