Selected sales and operating data for three divisions of different structural engineering firms are glven...
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Selected sales and operating data for three divisions of different structural engineering firms are glven as follows: Division A 15,e5e,800 3,01e,888 $617,858 Division B Division Sales Average operating assets Net operating income Minimum required rate of return $ 35,058,808 25,858,8e8 $7,018,888 5,818,8e8 525,7587e1,48e 9.08% 9.58% 14.08% Requlrec 1. Compute the return on Investment (ROl) for each divislon 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 10% rate of return. a. If performance Is being measured by ROl, which division or divislons will probably accept or reject the opportunity? b. If performance Is belng measured by residual Income, which division or divislons will probably accept or reject the opportunity? Complete this question by entering your answers in the tabs below Req 1 Req 2 Req 3A 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 2 decimal places.) Margin ROI Division A Division B Division C Req1 Req 2
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