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Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division B. $ 28,960,000 $ 7,240,000 $ 463,3601 7.50% Division C $ 26,200,000 $ 5,240,000 $ 655,000 12.50% Sales Average operating assets Net operating income Minimum required rate of return 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? Complete this question by entering your answers in the tabs below. Req 2 Division A Division B Division C Division A $ 16,200,000 $ 3,240,000 $ 761,400 7.00% Reg 1 Req 3A Compute the margin, turnover, and return on investment (ROI) for each division. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Margin % % % Turnover Req 38 ROI % % % Reg 2 >

Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division B. $ 28,960,000 $ 7,240,000 $ 463,3601 7.50% Division C $ 26,200,000 $ 5,240,000 $ 655,000 12.50% Sales Average operating assets Net operating income Minimum required rate of return 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? Complete this question by entering your answers in the tabs below. Req 2 Division A Division B Division C Division A $ 16,200,000 $ 3,240,000 $ 761,400 7.00% Reg 1 Req 3A Compute the margin, turnover, and return on investment (ROI) for each division. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Margin % % % Turnover Req 38 ROI % % % Reg 2 >

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division C $ 26,200,000 $ 5,240,000 $ 655,000 12.508 Sales Average operating assets Net operating income Minimum required rate of return 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? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Division A Division B Division C Req 3B Compute the margin, turnover, and return on investment (ROI) for each division. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Margin Division A $ 16,200,000 $ 3,240,000 $ 761,400 7.00% Req 3A % % % Turnover Division B $ 28,960,000 $ 7,240,000 $463,360 7.50% ROI Reg 1 % % % Reg 2 >
Transcribed Image Text:Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division C $ 26,200,000 $ 5,240,000 $ 655,000 12.508 Sales Average operating assets Net operating income Minimum required rate of return 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? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Division A Division B Division C Req 3B Compute the margin, turnover, and return on investment (ROI) for each division. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Margin Division A $ 16,200,000 $ 3,240,000 $ 761,400 7.00% Req 3A % % % Turnover Division B $ 28,960,000 $ 7,240,000 $463,360 7.50% ROI Reg 1 % % % Reg 2 >
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? Complete this question by entering your answers in the tabs below. Req 1 Residual income (loss) Compute the residual income (loss) for each division. (Do not round intermediate calculations. Loss amounts should be indicated by a minus sign.) Req 2 Req 1 Division A Division B Division C Req 3A Req 2 Req 1 Division A 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? Req 38 Complete this question by entering your answers in the tabs below. Division A Division B Division C Division B Req 3A Req 2 < Req 1 Assume that each division is presented with an investment opportunity that would yield a 8% rate of return. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? Req 38 Division C < Req 2 Req 3A > 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? Complete this question by entering your answers in the tabs below. Req 3B Req 3B > < Req 3A Req 3A Assume that each division is presented with an investment opportunity that would yield a 8% rate of return. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Req 3B >
Transcribed Image Text: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? Complete this question by entering your answers in the tabs below. Req 1 Residual income (loss) Compute the residual income (loss) for each division. (Do not round intermediate calculations. Loss amounts should be indicated by a minus sign.) Req 2 Req 1 Division A Division B Division C Req 3A Req 2 Req 1 Division A 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? Req 38 Complete this question by entering your answers in the tabs below. Division A Division B Division C Division B Req 3A Req 2 < Req 1 Assume that each division is presented with an investment opportunity that would yield a 8% rate of return. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? Req 38 Division C < Req 2 Req 3A > 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? Complete this question by entering your answers in the tabs below. Req 3B Req 3B > < Req 3A Req 3A Assume that each division is presented with an investment opportunity that would yield a 8% rate of return. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity? Req 3B >
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