Question: Sales Average operating assets Not operating income Minimum required rate of return Division $12.640,000 $ 3,160,000 $ 606, 720 10.005 Division B $ 35,800,000 $

Sales Average operating assets Not operating income Minimum required rate of return Division $12.640,000 $ 3,160,000 $ 606, 720 10.005 Division B $ 35,800,000 $ 7,160,000 $ 608,500 10.50 Division c $ 20,640,000 $ 5,160,000 $ 577,920 11.200 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 11% 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. Reg 1 Reg 2 Reg 3A Reg 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 2 decimal places.) Margin Turnover ROI Division A % Division B % % Division C % % Compute the residual income (loss) for each division. (Do not round intermediate calculatio indicated by a minus sign.) Division A Division B Division C Residual income (loss)
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