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of 2 Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below) Megamart provides the following information on its two investment centers Investment Center Sales Average Assets Electronics $ 44,250,000 $3,363,000 $17,700,000 Sporting Goods 24,660,000 2,466,000 13,700,000 Income DOR nt Ences Exercise 22-10 (Algo) Computing return on investment and residual income; investing decision LO A1 1. Compute return on investment for each center Using retum on investment, which center is most efficient at using assets to generate income? 2. Assume a target income of 10% of average assets. Compute residual income for each center Which center generated the most residual income? 3. Assume the Electronics center is presented with a new investment opportunity that will yield a 14% return on investment Should the new investment opportunity be accepted? The target return is 10% Complete this question by entering your answers in the tabs below. Megamart provides the following information on its two investment centers. Investment Center Electronics Sporting goods Sales 44,250,000 24,660, Income $ 3,363,000 2,466,000 Average Assets $ 17,700,000 13,200,000 2012 Exercise 22-11 (Algo) Computing profit margin and investment turnover LO A2 ts Compute profit margin and investment turnover for each center. Which center generates more income per dollar of sales? Which department is most efficient at generating sales from average invested assets? BOOK Het Complete this question by entering your answers in the tobs below. erences Profit Marin Investment Turnover Compute profit margin for each center. Which center generates more income per dollar of sales? Prolit Margin Numerator Denominator Investment Center Profit Margin Electronics 1 Sporting Goods 2

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