Question: Sales 16% Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division $

 Sales 16% Selected sales and operating data for three divisions of

different structural engineering firms are given as follows: Division A Division B

Division $ 12,270,eee $ 14,315,000 $ 25,562, 5ee Average operating assets $

3,067,5ee $ 7,157,5ee $ 5,112, see Net operating income $ 613,500 $

572,600 $ 818,000 Minimum required rate of return 14% 10% Required: 1.

Sales 16% Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division $ 12,270,eee $ 14,315,000 $ 25,562, 5ee Average operating assets $ 3,067,5ee $ 7,157,5ee $ 5,112, see Net operating income $ 613,500 $ 572,600 $ 818,000 Minimum required rate of return 14% 10% Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2 Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 15% rate of return a if performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Complete this question by entering your answers in the tabs below. Req1 Req 2 Reg Req 3B Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (Do not Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Req Req 3B Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round your answers to 1 decimal place.) Margin Turnover ROI % Division A Division B Division C % % de de % % % Reg 1 Reg 2 > Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Req Req 3B Compute the residual income (loss) for each division. (Do not round intermediate calculations. Loss amounts should be indicated by a minus sign.) Division A Division B Division C Residual income (loss) Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Req Req 3B Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? Division A Division B Division Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req 3A Req 38 Assume that each division is presented with an investment opportunity that would yield a 15% rate of return. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Division A Division B Division C

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