Return on Investment, Margin, Turnover Data follow for the Consumer Products Division of Kisler Inc.: Year 1 Year 2 Sales $9,210,000 $7,900,000 Operating income 517,602 305,730 Average operating assets 18,058,824 17,555,556 Req u ired: 1. Compute the margin (as a percent) and turnover ratios for each year. Round your answers to two decimal places. ) Year 1 Year 2 Margin [:] % [:] % :1 :] Turnover 2. Compute the ROI for the Construction Division for each year. Note: Enter percentage to two decimal places. ROI year 1 R01 year 2 C] % Residual Income Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last year's results: Adams Division Jefferson Division Net (after-tax) income $671,550 $362,250 Total capital employed 4,600,000 3,477,500 In addition, Washington Company's top management has set a minimum acceptable rate of return equal to 10%. Required: Enter negative values as negative numbers. 1. Calculate the residual income for the Adams Division. tA 2. Calculate the residual income for the Jefferson Division. toReturn on Investment and Investment Decisions Leslie Blandings, division manager of Audiotech Inc., was debating the merits of a new producta weather radio that would put out a warning if the county in which the listener lived were under a severe thunderstorm or tornado alert. The budgeted income of the division was $825,000 with operating assets of $4,525,000. The proposed investment would add income of $640,000 and would require an additional investment in equipment of $4,000,000. The minimum required return on investment for the company is 15%. Required: 1. Compute the ROI of the following (round to the nearest whole percent): a. The division if the radio project is not undertaken. C] % b. The radio project alone. :] % c. The division if the radio project is undertaken. C] % 2. Compute the residual income of the following: a. The division if the radio project is not undertaken. $:] b. The radio project alone. 55:] c. The division if the radio project is undertaken. 55:] 3. This depends on whether Leslie's division is evaluated on the basis of ROI or on the basis of residual income. Overall division ROI wills V ; so if R01 is the basis for evaluation, she will ' the investment. 0n the other hand, residual income for the project is V and will V overall residual income. If the division is evaluated on the basis of residual income, the project will be