Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Re
Posted: Thu May 19, 2022 2:50 pm
Selected sales and operating data for three divisions of
different structural engineering firms are given as follows:
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 10% 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?
different structural engineering firms are given as follows:
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 10% 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?