Required information [The following information applies to the questions displayed below.] ACME Food Manufacturing reports the following for two its divisions for a recent year. ($ millions) Beverage Division Cheese Division Invested assets, beginning Invested assets, ending Sales $2,675 $4,468 4,406 3,931 2,599 2,687 Operating income 355 640 sume that each of the company's divisions has a required rate of return of 8%. Compute residual income for each division. (Enter ur answers in millions.) millions) Beverage Cheese Targeted return

Selected sales and operating data for three divisions of different structural engineering firms are given as follows:     Division A Division B Division C Sales $ 12,000,000   $ 14,000,000   $ 25,000,000   Average operating assets $ 3,000,000   $ 7,000,000   $ 5,000,000   Net operating income $ 600,000   $ 560,000   $ 800,000   Minimum required rate of return   14 %   10 %   16 %     Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division. 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 the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity?

Assume the Residential Division of Kipper Faucets had the following results last year: What is the division’s RI? a. $(140,000) b. $104,000 c. $140,000 d. $(104,000)

A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 40% of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated? Sales Variable costs $255,000 149,000 Fixed costs Direct 35,000 54,000 Indirect Operating loss $ (17,000) 1-a. Compare the amounts of total revenues and total avoidable expenses. 1-b. Based on this information, should the division be eliminated? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Compare the amounts of total revenues and total avoidable expenses. Revenues Avoidable expenses Revenues are greater than (less than) avoidable expenses by K Required 1A Required 1B