Sales Average operating assets Net operating income Minimum required rate of return Division A $ 12,600,000 $ 3,150, eee $ 638,000 14% Division B $ 14,700, eee $ 7,350, eee $588,000 Division $ 26,250, eee $ 5,25e,eee $ 848, cee 16% 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? Reg 1 Req2 Reg 3A Reg 38 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 % Reg! Reg 2 Reg 3A Reg 38 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 Residual income (5) Rea 1 Reg 2 Req 3A Reg 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 Reg 1 Reg 2 Reg 3A Reg 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