Complete #2 Selected sales and operating data for three divisions of different structural engineering firms are given as follows:Division ADivision BDivision C$ 12,120, 000$3,030,000$4$ 20,120,000$ 5,030,000SalesAverage operating assetsNet operating incomeMinimum required rate of return$28,120,0007,030,000449,920$2$496,9202$7.50%503,00010.00%7.00%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 8% 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?esComplete this question by entering your answers in the tabs below.Req 1Req 2Req 3AReq 3BJi..-.Prev13 of 13Nexto search b. If performance is being measured by residual income, which division or divisions will probably accept the opporComplete this question by entering your answers in the tabs below.Req 1Req 2Req 3AReq 3BCompute the residual income (loss) for each đivision. (Do not round intermediate calculations. Loss amounts should beindicated by a minus sign.)Division ADivision BDivision CResidual income (loss)2416$46.$410< Req 1Req 3A >< Prev13 of 13Nextearch近

Residual income is the income earned over and above minimum desired income at minimum required rate…

Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C $ 12,120,000 $ 3,030, еее $ 28,120,00e 2$ Sales $ 20,120,000 Average operating assets Net operating income Minimum required rate of return 2$ 24 7,030,000 5,030,000 503,000 %24 496,920 7.00% 449,920 24 7.50% 10.00% Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division. 2. Compute the residual income (loss) for each division. 2 Accume that cach division is presented with an investment opnortunity that would vield a 8% rate of return

Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C $ 12,120,000 $ 3,030, еее $ 28,120,00e 2$ Sales $ 20,120,000 Average operating assets Net operating income Minimum required rate of return 2$ 24 7,030,000 5,030,000 503,000 %24 496,920 7.00% 449,920 24 7.50% 10.00% Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division. 2. Compute the residual income (loss) for each division. 2 Accume that cach division is presented with an investment opnortunity that would vield a 8% rate of return

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 14.5.3P

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