Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an

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Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Average Investment Center Sales Income $40,500,000 $2,916,000 Electronics Invested Assets $16,200,000 12,200,000 Sporting goods 20,740,000 2,074,000 1. Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? 2. Assume a target Income level of 11% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company? 3. Assume the Electronics department is presented with a new investment opportunity that will yield a 15% return on investment. Should the new investment opportunity be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? Return on Investment Choose Numerator: Choose Denominator: Return on Investment = Return on Investment Electronics T Sporting Goods Which department is most efficient at using assets to generate returns for the
Investment Center Sales Incone Average Invested Assets $16,200,000 12,200,000 Electronics Sporting goods $40,500,000 $2,916,000 20,740,000 2,074,000 1. Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company? 2. Assume a target income level of 11% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company? 3. Assume the Electronics department is presented with a new investment opportunity that will yield a 15% return on investment. Should the new Investment opportunity be accepted? Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 Assume a target income level of 11% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company? Investment Center Electronics Sporting Goods Net income Target net income Residual income Which department is most efficient at using assets to generate returns for the company?
Average Invested Assets Sales Income Investment Center Electronics Sporting goods $40,500,000 $2,916,000 20,740,000 2,074,000 $16,200,000 12,200,000 1. Compute return on investment for each department. Using return on investment, which department is most efficient at using as to generate returns for the company? 2. Assume a target income level of 11% of average invested assets. Compute residual income for each department. Which departr generated the most residual income for the company? 3. Assume the Electronics department is presented with a new investment opportunity that will yield a 15% return on investment. Should the new investment opportunity be accepted? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume the Electronics department is presented with a new investment opportunity that will yield a 15% return on 1 Investment. Should the new investment opportunity be accepted? Should the new investment opportunity be accepted?