Question: (Total: 31 marks) SECTION B: PROBLEM SOLVING (7 Marks) Question 1 MPR is a division of a major corporation. The following data are for the

(Total: 31 marks) SECTION B: PROBLEM SOLVING (7 Marks) Question 1 MPR is a division of a major corporation. The following data are for the latest year of operations Sales SI8,200,000 Net operating income S1,500,050 Average operating assets $4,600,000 The company's minimum required 14% rate of retum Required: a. What is the division's margin? (1 mark) b. What is the division's tumover? (I mark) c. What is the division's return on investment (ROI? (1 mark) d. What is the division's residual income? (1 mark) e. Explain the common criticisms of ROI and state why the residual income may be a better indicator than the ROI. (3 marks) 5

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